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Question 1

What is GNI?

Answer 1

Gross National Income

Question 2

What is the GNI approach?

Answer 2

Working out how much people earn irrespective of whether the people stay abroad or in the country

Question 3

GNI is = to GDP …(a)… income from other countries (for example: ..(b).. and dividends), …(c)… payments (for example: interest and difidends) made to other countries

Answer 3

a) plus
b) interest
c) less

Question 4

To obtain GNI from GDP do the following…

Answer 4

• SUBTRACT (MINUS) from GDP
  »profits/interest/income from DOMESTIC
  INVESTMENT that accrues to residents of
  other countries
  »wages for foreign workers

+ ADD (PLUS)
» profits/interest/income from
INVESTMENTS ABROAD (For example:
profits earnd by South African company
that constructs a bridge in Lesotho)
» wages earned by permanent residents
OUTSIDE South Africa (For example:
South Africans living in Australia)

Question 5

How do you calculate GNI?

Answer 5

GNI = GDP + Primary income receipts -
primary income payments

Question 6

If South Africa PAYS more to other countries than what it RECEIVES from other countries, what will the formula be?

Answer 6

GNI = GDP - Net primary income payments