Quote:
Originally Posted by intelligentgal
A very good effort friends. keep it up. God bless you all.
Here goes my little contribution:
GNP:
Gross National Product (GNP) is the market value of all products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
(the difference between GDP and GNP is that in former foreign remittances are included while GNP does not take foreign remittances into account, Please correct me if i am wrong)
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Correction:
Gross Domestic Product (GDP) as evident from the term itself, is based on the economic activity within a country. It is monetary value of all the final goods and services produced within a country in a given period of time (normally one year).
(GDP does not take into account the foreign flows (inflows and outflows).
Whereas, Gross National Product (GNP) takes into account the foreign flows too (net income made abroad).
GDP is the value of goods and services produced within the boundaries of a country and GNP is the value of goods and services produced by all the citizens of a country where ever they may be.
Expenditure Method Formula:
GDP = consumption + investment + (government spending) + (exports – imports), or, GDP = C + I + G + (X-M)
GNP = GDP + NR (Net income from assets abroad (Net Income Receipts))
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