In a newly industrialising country, foreign multinational corporations (MNCs) dominate the industrial sector, leading to a massive repatriation of profits to their home countries. Conversely, the country receives minimal income from overseas investments or citizens working abroad.
Which statement correctly describes and explains the relationship between this country's Gross Domestic Product (GDP\text{GDP}GDP) per capita and its Gross National Income (GNI\text{GNI}GNI) per capita?
GDP\text{GDP}GDP per capita is lower than GNI\text{GNI}GNI per capita because GNI\text{GNI}GNI always includes the total value of foreign direct investment inflows regardless of outflows.
GDP\text{GDP}GDP per capita is higher than GNI\text{GNI}GNI per capita because the outward flow of profits to foreign MNCs exceeds the inward flow of income from abroad.
GDP\text{GDP}GDP per capita is equal to GNI\text{GNI}GNI per capita because both metrics are standardized by dividing the total domestic value of goods by the same total population.
GDP\text{GDP}GDP per capita is higher than GNI\text{GNI}GNI per capita because GNI\text{GNI}GNI per capita excludes the value of services produced domestically by multinational corporations.
