Since GNP exceeds GDP

Question

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it can be concluded that foreign production by U.S. factors of production---U.S. production by foreign factors of production.

Answer 1

This statement does not logically follow from the premise that GNP exceeds GDP. The difference between GNP and GDP is that GNP takes into account the production of U.S. citizens and entities on foreign soil, while GDP only measures the production within the boundaries of the United States. The relationship between foreign production by U.S. factors of production and U.S. production by foreign factors of production is not directly related to the difference between GNP and GDP.

Answer 2

For countries having a significant fraction of domestic production by​ foreign-owned factors of​ production, GDP will likely---GNP.

Answer 3

For countries that have a significant fraction of domestic production by foreign-owned factors of production, GDP will likely be lower than GNP. This is because GDP only measures the production within the country's geographic boundaries, while GNP takes into account the production of the country's citizens and entities, regardless of where it occurs. In this situation, the profits and returns from the foreign-owned factors of production will likely be repatriated to their home countries, which will reduce the domestic income and skew the GDP downwards. However, these profits and returns will be included in GNP, resulting in a higher GNP compared to GDP.