Why do countries with high GNI and GDP are attractive for foreign investment? Solution Let us first understand what is a GNI and GDP The gross national income (GNI) is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents Gross Domestic Product (GDP) is the broadest quantitative measure of a nation\'s total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation\'s geographic borders over a specified period of time. The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country\'s economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year. Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total. Both the factors reflects the following ; and are most important in attracting foreign investments In other words ,it determine the health of the any given economy ,and therefore is an important yardstick to assess and measure and invest.

1. Why do countries with high GNI and GDP are attractive for foreign investment?
Solution
Let us first understand what is a GNI and GDP
The gross national income (GNI) is the total domestic and foreign output claimed by residents of
a country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign
residents, minus income earned in the domestic economy by nonresidents
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic
activity. More specifically, GDP represents the monetary value of all goods and services
produced within a nation's geographic borders over a specified period of time.
The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a
country's economy. It represents the total dollar value of all goods and services produced over a
specific time period; you can think of it as the size of the economy. Usually, GDP is expressed as
a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this
is thought to mean that the economy has grown by 3% over the last year.
Measuring GDP is complicated (which is why we leave it to the economists), but at its most
basic, the calculation can be done in one of two ways: either by adding up what everyone earned
in a year (income approach), or by adding up what everyone spent (expenditure method).
Logically, both measures should arrive at roughly the same total.
Both the factors reflects the following ; and are most important in attracting foreign investments
In other words ,it determine the health of the any given economy ,and therefore is an important
yardstick to assess and measure and invest