What is Gross National Product (GNP)? – Concept of Economy’s Terminology – Free PDF

What is Gross National Product?

• GDP refers to the money value of final goods and services produced in a country in the span of one year.
• Gross National Product (GNP) is the total value of all final goods and services produced by a country’s citizens in a given financial year, irrespective of their location.

Crux of the story

• In case of GDP we are not concerned who makes the goods, but it should be in the territory of the country. but In case of GNP it should be made by the citizen of the country irrespective of the location.
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GNP = GDP+Net factor income from abroad = income earned by the domestic factors of production employed in the rest of the world— Factor income earned by the factors of production of the rest of the world employed in the domestic economy

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