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if SA's GDP is greater than GNP then the income earn by foreigner investors and foreign...

if SA's GDP is greater than GNP then the income earn by foreigner investors and foreign workers in South Africa is

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Answer #1

Answer : GNP = GDP + Net factor income from abroad

Net factor income from abroad = Income earned by domestic investors and workers from abroad - Income earned by foreign investors and foreign workers

Now if income earned by foreign investors and workers from domestic country is higher than the income earned by domestic investors and workers from abroad then for domestic country the net factor income from abroad become negative. Now if the net factor income from abroad is negative then GNP will be lower than GDP. This means that GDP will be greater than GNP. So, here if South Africa's (SA) GDP is higher than GNP then it indicates that "the income earned by foreign investors and foreign workers from SA is higher than the income earned by domestic investors and workers".

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