GNI
Gross National Income (GNI) is the total income earned by nationals of a country, including income from investments abroad, minus income earned by foreign residents in the country. It is measured in nominal terms. GNI differs from GDP because it accounts for international income flows.
Real World
Ireland's GDP is inflated by profits booked there by multinationals like Apple and Google for tax purposes, so the World Bank uses GNI per capita instead of GDP when classifying Ireland's actual living standards.
Exam Focus
Use GNI rather than GDP when comparing living standards across countries — state why GDP can be misleading for specific nations.
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