IGCSE Development Studies: Specimen Questions with Answers 25 - 26 of 98

Passage

GNP data of South Africa is as follows:

South Africa GNP for was $ 0.00B, a 100 % decline from 2019.
South Africa GNP for 2019 was $ 353.53B, a 6.38 % increase from 2018.
South Africa GNP for 2018 was $ 332.32B, a 7.74 % increase from 2017.
South Africa GNP for 2017 was $ 308.44B, a 0.34 % increase from 2016.

Question 25 (3 of 6 Based on Passage)

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Is South Africa a developed country or developing country?

Explanation

South Africa has in abundance natural resources and goods; it has made a remarkable progress in the industrial sector but it is still counted as a developing nation. South Africa has self-sufficiency, investment in exports is the main source of revenue for the government and exchange flows to deal with import, largest contributor to the GDP of the country is industrial sector with 33 % and service sector with 66 % , the country is rich in natural resource and has cheap labor. Despite all the possibilities South Africa is a developing nation because-

Export and domestic investment have a positive impact on the growth of the economy but the imports have a negative impact.
The added value of agriculture and imports is very low in South Africa
South Africa has very unfavorable environment for agriculture and capacities to invest in the agricultural sector.
In South Africa agriculture is the only sector which can help in removing unemployment and eradicating poverty.

Question 26 (4 of 6 Based on Passage)

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Distinguish between GNP and GDP

Explanation

Distinguish between GNP and GDP
S. No.	GNP	GDP
1.	GNP is a national concept	GDP is a territorial concept
2.	GNP is a wider concept	It is relatively a narrower concept
3.	Formula of income from abroad	Formula of GDP = P (G) + P (S)
4.	If we subtract net factor income from abroad from it, we get GDP	If we add NFIA to it, we get GNP
5.	GNP will be greater than GDP when NFIA is positive.	When NFIA is negative it GDP will be greater than GNP.