If Toyota builds a new plant in the north of England ?
Correct answer: D. once the plant starts producing cars UK GDP will rise more than UK GNP
- A. None of these answers
- B. There has been an increase in foreign portfolio investment in the UK
- C. Once the plant starts producing cars UK GDP will rise less than UK GNP
- D. once the plant starts producing cars UK GDP will rise more than UK GNP
Explanation
A Toyota plant in England adds to UK production, so UK GDP rises. The profits belong to a Japanese-owned company and are not counted as UK factor income, so UK GDP rises more than UK GNP.
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