FSOT Pro

Answer: A - The gross domestic product includes the net value of the final goods and services rendered by a country in one year, strictly within its own borders, regardless of whether or not the factors of production (materials, machines and people) belong to that country. For example, the value of a British company physically located in the United States would contribute to the American GDP, not the British. The gross national product includes the net value of the final goods and services rendered by a country in one year, based on its factors of production, whether they are physically within the nation's borders or abroad. For example, the value of an American company located in the United Kingdom would contribute to the American GNP but the British GDP.