What is the functional difference between GDP and GNP? | Investopedia

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** What is the functional difference between GDP and GNP? **

By Investopedia | March 4, 2015 — 4:11 PM EST
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A:

Gross Domestic Product (GDP) and Gross National Product (GNP) both try to
measure the market value of all goods and services produced for final sale
in an economy. The difference is how each term interprets what constitutes
the economy. GDP refers to and measures the domestic levels of production,
whereas GNP measures the levels of production of any person or corporation
of a country. For example, the American GNP measures the production levels
of any American or American-owned entity, regardless of where the actual
production process is taking place, and defines the economy in terms of the
citizens. GNP is less commonly referred to than GDP, but is best described
as the measure of


Source: www.investopedia.com/ask/answers/030415/what-functional-difference-between-gdp-and-gnp.asp


how are gdp and gnp measured


Gross national product - Wikipedia, the free encyclopedia

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** Gross national product **

From Wikipedia, the free encyclopedia
Jump to: navigation, search
"GNP" redirects here. For other uses, see GNP (disambiguation).
Not to be confused with Gross national income or Gross domestic product.

*Gross national product* (*GNP*) is the market value of all the products
and services produced in one year by labour and property supplied by the
citizens of a country. Unlike gross domestic product (GDP), which defines
production based on the geographical location of production, GNP allocates
production based on location of ownership.

GNP is an economic statistic that is equal to GDP plus any income earned by
residents from overseas investments minus income earned within the domestic
economy by overseas residents.

GNP does not distinguish between qualitative improvements in the state of
the technical arts (e.g., increasing computer processing speeds), and
quantitative increases in goods (e.g., number of computers produced), and
considers both to be forms of "economic growth".^[1]

When a country's capital or labour resources are employed outside its
borders, or when a foreign firm is operating in its territory, GDP and GNP
can produce different measures of total output. In 2009 for instance, the
United States estimated its GDP at $14.119 trillion, and its GNP at $14.265
trillion.^[2]

The Gross national income (GNI) has gradually replaced the Gross national
product (GNP) in international statistics.^[3]^[4] While being conceptually
identical, it is calculated differently.^[5]

*Contents*

· 1 Use
· 2 See also
· 3 References
· 4 Further reading
· 5 External links

*Use[edit]*

The United States used GNP as its primary measure of total economic
activity until 1991, when it began to use GDP.^[6] In making the switch,
the Bureau of Economic Analysis (BEA) noted both


Source: en.wikipedia.org/wiki/Gross_national_product

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