Which of the following statements is/are correct about Gross National Income (GNI)?

1. GNI calculates the total income earned by a nation’s people and businesses, including investment income, regardless of where it was earned.

2. It also covers money received from abroad, such as foreign investment and economic development aid.

Select the correct answer using the code given below:

• GNI is the total amount of money earned by a nation’s people and businesses. It is used to measure and track a nation’s wealth from year to year. The number includes the nation’s gross domestic product, plus the income it receives from overseas sources.
• GNI is an alternative to Gross Domestic Product (GDP) as a means of measuring and tracking a nation’s wealth and is considered a more accurate indicator for some nations.

In brief

• Gross National Income is an alternative to Gross National Product as a measure of wealth. It calculates income instead of output.
• GNI can be calculated by adding income from foreign sources to the Gross Domestic Product.
• Nations that have substantial foreign direct investment, foreign corporate presence, or foreign aid will show a significant difference between GNI and GDP.