Gamma Ltd., a South Korean company, earns profits from its manufacturing operations in India. How these profits will be reflected in the economic…

CA Foundation · Business Economics · PYQS · September 2025
Gamma Ltd., a South Korean company, earns profits from its manufacturing operations in India. How these profits will be reflected in the economic measures of both countries?
(A) A. They will be included in India's GDP and South Korea's GDP.
(B) B. They will be included in India's GDP but not in South Korea's GNP.
(C) C. They will be included in India's GDP and South Korea's GNP.
(D) D. They will be included only in India's GNP.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. They will be included in India's GDP and South Korea's GNP.

Topics: Determination of National Income

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