What is gross national income? How is it calculated? Illustrate your answer with a specific example
What will be an ideal response?
Gross National Income is the broadest measure of economic activity. It is the market value of final goods and services newly produced by domestically owned factors of production, which includes the international production activities of national companies. For example, the value of a Ford car manufactured in the United States and the portion of the value of a Ford manufactured in Mexico using U.S. capital and management counts in U.S. GNI. However, the portion of the value of a Japanese Toyota manufactured in the United States using Japanese capital and management would not be counted in U.S. GNI, but it would be counted in Japanese GNI.
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The net amount reported for short-term receivables is not affected when a specific account receivable is determined to be uncollectible.
a. true b. false
A company is part of a keiretsu in Japan. Its leaders are worried about the company's financial viability and ask for help from other members of the keiretsu. Why would other participants of the keiretsu feel the need to aid the failing company?
a. Members of the keiretsu will not feel obligated to help, as they will have members of the company fend for themselves. b. Members of the keiretsu are seen as family, which commands attention and allegiance. c. Members of the keiretsu are legally obligated to aid when members are in need. d. Keiretsu are companies that make a profit from lending money.