silly national income question

[Arushi :))]

Suppose Japanese shareholders own 49% and Indian shareholders 51% of the shares of a firm producing automobiles in India.
The profits earned by Japanese shareholders of the firm form:
a) part of Indian GDP and part of Japanese GNP
b) part of Indian GDP and part of Indian GNP
c) part of Indian GNP and part of Japanese GNP
d) None of the above

According to me the answer is b
because according to income approach , dividends are a part of profits of a firm , so whatever are the profits to Japanese will be included in India's GNP and India's GDP.
Should it be included in Japanese GNP??
I guess no because these profits dont fit anywhere in value added approach or income approach ( its not a factor payment to these shareholders!)
So , i think its b
Any suggestions?

[The Villain]

Yes its b surelyyy

[Arushi :))]

THankyouuuuuuuuuuuuuuu so much Ron !! You made my day :)
Btw u got thru SAU?

[hs]

its (a) surely .. i discussed it with a teacher

for explanation read page 293 chapter 12 krugman (top para) sem 2 macro

[Homer Simpson]

I think its (a)- Japanese profits are indeed a part of Indian GDP by Income approach - its a geographical concept and profits are a part of the operating surplus.

However, these profits would form the GNP of Japan as they accrue to japanese residents.

[The Villain]

Sry the answer is a...really thought u marked japanese GNp...

[Amita_IITM]

Hey Arushi, it should be a. And it will be because of the same reason tsuki gave.
Also, did you get SAU?