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    Dayyan Ahmed Chaudhary
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    The document contains the answers to two questions on international finance concepts. For question one, the summary states that both imports and exports should be included in calculating GNP, as imports represent consumption and exports represent income for the country regardless of whether the trade is in surplus or deficit. For question two, the summary outlines the calculations to determine GDP using the expenditure and income approaches, finding the GDP to be 910 with investment of 180.

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    The document contains the answers to two questions on international finance concepts. For question one, the summary states that both imports and exports should be included in calculating GNP, as imports represent consumption and exports represent income for the country regardless of whether the trade is in surplus or deficit. For question two, the summary outlines the calculations to determine GDP using the expenditure and income approaches, finding the GDP to be 910 with investment of 180.

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    5 views1 page

    Dayyan Ahmed Assignment 9

    Uploaded by

    Dayyan Ahmed Chaudhary
    The document contains the answers to two questions on international finance concepts. For question one, the summary states that both imports and exports should be included in calculating GNP, as imports represent consumption and exports represent income for the country regardless of whether the trade is in surplus or deficit. For question two, the summary outlines the calculations to determine GDP using the expenditure and income approaches, finding the GDP to be 910 with investment of 180.

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    © All Rights Reserved
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    of 1

    International Finance

    Assignment 9
    Dayyan Ahmed
    17U000374
    Section B ECO and Marketing

    Q 1.

    No, absolute values and imports and exports ought to be remembered for the
    figuring of the GNP. Any import builds use, paying little mind to the idea of import.
    Similarly, exports paying little heed to their tendency increment the pay of the
    country.

    Q 2.

    National income = NNP = 10 + 780 + 100 = 890.


    Subtract factor income from abroad to get NDP = 890 – 10 = 880.
    Add depreciation to get GDP = 880 + 30 = 910.
    Use expenditure approach: GDP = 500 + 250 + (40 – 60) + investment
    Investment = 910 – (500 + 250 + 40 – 60) = 180

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