Exercise 2

a) Prepare a graph depicting GNI and GDP for Saudi Arabia for the last 10 years.

b) Looking at the graph prepared in (b), compare GNI and GDP. That is, in the case of Saudi Arabia, explain the differences between GNI and GDP. Figure out what causes these differences – you should start with providing a definition of GNI and comparing it to the definition of GDP.

Notes. Formerly, Gross National Income was called Gross National Product (GNP). Do not forget to provide sources of data. Use only the reliable sources of data: government agencies (e.g. GASTAT), World Bank.