Wednesday, February 3, 2010

True or False: If all the workers sending remittances home to Mexico are citizens of Mexico and the remittance

True or False: If all the workers sending remittances home to Mexico are citizens of Mexico and the remittances come only from workers' current income, then their contribution to Mexico's GNP will in principle be greater than the remittances.











True





FalseTrue or False: If all the workers sending remittances home to Mexico are citizens of Mexico and the remittance
False. Their monetary contribution has nothing to do with the GNP at all, as the GNP is the total value of all goods and services produced for consumption during a certain time period. Their monetary contributions might help fund this production, but if they are sending money home and Mexico stops producing products and shuts down their tourist industry in a certain region, then the GNP is affected by diminished products and services. It would also exclude the labour involved in earning the income sent to Mexico, as it was not performed in Mexico.
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