<p>Can anyone explain why the net income of some MNCs <em>overwhelmingly surpass</em> the GDP of countries/regions, where their sources of labor/raw materials are located? Accompanying references are welcome.</p>
<p>P.S. :- My academic training is in history, and am not really familiar with nitty-gritty aspects of economics. Apologies, if this is a stupid question.</p>

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2020-06-30T19:38:44.913Z
How do you define *overwhelmingly*? Also most companies nowadays use sources from all over the world, for example Apple will have design in California but manufacturing in China and utilize labor of distributors in all countries it’s present... There are no stupid questions, and in this case I can see even some interesting question being at the core but as you are asking it it’s simply not answerable you need to provide some details and clarity and also decide how do you want to assign MMC to particular geographical area - doing so based on narrow use of resources/labor is not very fortunate
1muflon1
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2020-06-30T19:40:03.580Z
Some specific examples might help this question a lot.
Brian Z
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2020-06-30T19:49:58.693Z
Just to add to my previous comment. For example, you can have a hypothetical software developer that draws let’s say 70\% of their labor from Luxembourg has relatively small team and makes software that millions of people use which could easily make the firm having higher income than GDP of Luxembourg but does it even make sense to compare the firms income to the income of Luxembourg when the MNC supplies global market of millions or even billions of people while Luxembourg manages a acountry that’s size of flyover town in US?
1muflon1
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2020-06-30T19:57:50.177Z
@the_rainbox you don’t need to excuse yourself I think that given the question your answer is good one I just gave you plus one but I wanted to give OP feedback because the question as it is now is poor fit for the SE model and also in general outside SE it would be question that’s framed in a way that would rather obscure than illuminate due to the problems of even assigning MNC some geographic location that the question glosses over
1muflon1
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2020-06-30T21:27:43.380Z
@1muflon1 Your politeness (or desire to avoid confrontation) clouds your judgement.
Giskard
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2020-06-30T21:32:42.610Z
@Giskard I suppose you are right because this was already  pointed to me once before but could you be more specific so I can better myself for the future? Did I go too easy on the_rainbox or OP or both?
1muflon1
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2020-07-01T01:11:20.433Z
@1muflon1 I can only speak for myself, but I don't understand the core of the question, and I find that the answer makes unconnected unsourced claims.
Giskard
<gdp><multinational-companies>
MNCs income greater than origin GDP
ThoughtfulHistorian
# MNCs income greater than origin GDP

(Asked by: username_0 on 2020-06-30)

Can anyone explain why the net income of some MNCs *overwhelmingly surpass* the GDP of countries/regions, where their sources of labor/raw materials are located? Accompanying references are welcome.

P.S. :- My academic training is in history, and am not really familiar with nitty-gritty aspects of economics. Apologies, if this is a stupid question.

**Tags:** gdp, multinational-companies

> **Comments:**
> **username_1**: How do you define *overwhelmingly*? Also most companies nowadays use sources from all over the world, for example Apple will have design in California but manufacturing in China and utilize labor of distributors in all countries it’s present... There are no stupid questions, and in this case I can see even some interesting question being at the core but as you are asking it it’s simply not answerable you need to provide some details and clarity and also decide how do you want to assign MMC to particular geographical area - doing so based on narrow use of resources/labor is not very fortunate  
> **username_2**: Some specific examples might help this question a lot.  
> **username_1**: Just to add to my previous comment. For example, you can have a hypothetical software developer that draws let’s say 70\% of their labor from Luxembourg has relatively small team and makes software that millions of people use which could easily make the firm having higher income than GDP of Luxembourg but does it even make sense to compare the firms income to the income of Luxembourg when the MNC supplies global market of millions or even billions of people while Luxembourg manages a acountry that’s size of flyover town in US?  
> **username_1**: @the_rainbox you don’t need to excuse yourself I think that given the question your answer is good one I just gave you plus one but I wanted to give OP feedback because the question as it is now is poor fit for the SE model and also in general outside SE it would be question that’s framed in a way that would rather obscure than illuminate due to the problems of even assigning MNC some geographic location that the question glosses over  
> **username_3**: @username_1 Your politeness (or desire to avoid confrontation) clouds your judgement.  
> **username_1**: @username_3 I suppose you are right because this was already  pointed to me once before but could you be more specific so I can better myself for the future? Did I go too easy on the_rainbox or OP or both?  
> **username_3**: @username_1 I can only speak for myself, but I don't understand the core of the question, and I find that the answer makes unconnected unsourced claims.  

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