Australia contains many natural resources and foreign firms often come into Australia to extract them. The profits that those foreign firms make are sent back to their home countries.
GDP in Australia is
A.
smaller than GNP in Australia because the profits that are earned by domestic firms are sent overseas.
B.
smaller than GNP in Australia because the profits that are earned by foreign firms are sent back to their home country.
C.
larger than GNP in Australia because the profits that are earned by foreign firms are sent back to their home country.
D.
larger than GNP in Australia because the profits that are earned by domestic firms are sent overseas.