Which measure accounts for the earnings sent back to a country from foreign sources?

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The measure that accounts for earnings sent back to a country from foreign sources is Gross National Product (GNP). GNP reflects the total economic output produced by the residents of a country, regardless of whether this production occurs domestically or abroad. It includes the income earned by residents from overseas investments minus the income earned within the domestic economy by foreign residents.

GNP is distinct from Gross Domestic Product (GDP), which focuses solely on the value of goods and services produced within a country's borders, excluding earnings from foreign activities. On the other hand, Gross National Income (GNI) is similar to GNP in that it also accounts for income from abroad but is typically measured in monetary terms that include factors such as remittances and foreign aid. Purchasing Power Parity (PPP) is an economic theory and a method used to compare different countries' currencies through a market "basket of goods," but it does not directly address returns on foreign investments. Therefore, GNP is the most appropriate measure in this context as it emphasizes the total income earned by a nation's residents from all sources, including those outside its borders.

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