what is the distinction between GNP and GDP?

Answer 1

The difference is very minor.

GDP measures goods and services produced within the geographic boundaries of a country. GNP measures goods and services produced using capital controlled by the residents of a country. So the only difference between the two occurs because of cross-border business ownership. Say, a company is based in Country A and owns a factory in Country B. The product of that factory will be counted towards GDP in Country B, but not in Country A, and towards GNP in Country A, but not in Country B.

Answer 2

A country's Gross Domestic Product, or GDP, is the amount of goods and services, measured at market prices, produced within the country during a particular time period (usually a year). Gross National Product, or GNP, is the amount of goods and services produced by residents of a country, regardless of where that production takes place. In 1999, the U.S. GDP -- again, the amount of goods and services produced within the country's geographic borders -- was $9,299 billion. Payments to U.S. residents -- including U.S.-based firms -- from their activities in the rest of the world contributed $306 billion and payments to foreign residents from their activities in the U.S. subtracted $317 billion, resulting in a GNP of $9,288 billion. So for 1999, GNP was 99.88% of GDP -- not much difference. But for developing countries, GDP might not be a great indicator of financial performance. If a nation has a high percentage of FDI, and the profits are repatriated, they'll have a high GDP, but not a commenserate raise in available capital or living standards. Let me give you an example: In national accounting, the incomes that people obtain are taken as measures of the amount they produce. If firms obtain profits from the production of a good, then those firms are credited with producing that good to the extent of their profits. Thus, when U.S. investors obtain $100 million as profits from production in Mexico, that $100 million is counted towards the U.S. GNP, not towards the Mexican GNP. Yet the $100 million gets counted as part of the Mexican GDP, not the U.S. GDP, because the production takes place within the geographic boundaries of Mexico.

Answer 3

Gross National Product (GNP) (a close value is Gross National Income, equal to GNP + depreciation allowances) is the total value of all final goods and services produced by a country's factors of production and sold on the market in a given time period. For example, because Mercedes-Benz is owned by Germans, its profits from its Belgian activities would count towards German GNP, but because the activities take place in the Belgium it would count toward Belgian GDP. A Brit working in Paris would have his income count toward UK GNP but his output would be part of French GDP.



GDP = consumption + investment + (government spending) + (exports − imports)


you really should read wikipedia on both subjects

Have a nice day.

Answer 4

GNP is the total output of all domestically-owned factors of production within a period. Put in another way, it is the total income of those factors within a period.

GDP is the total output produced within a country, or the income from all economic activities within a country.

The distinction arises as some domestically owned factors are not within a country, and some foreign-owned factors reside within a country. Examples: workers residing abroad for the former, factories of foreign investors for the latter.

To adjust GDP to get GNP, add domestic factor income from abroad, then subtract foreign factor income earned domestically.

Answer 5

GDP is Gross domestic product. For a region, the GDP is "the market value of all the goods and services producted by labor and property located in" the region", usually a country..

GNP is he Gross National Product (GNP) is the value of all the goods and services produced in an economy, plus the value of the goods and services imported, less the goods and services exported.




A key example helps. A Japanese-owned automobile factory in the US counts in US GDP but in Japanese GNP


economics.about.com

Answer 6

Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. It represents the monetary value of all goods and services produced within a nation's geographical frontiers over a given period of time. It does not take care of net exports (exports-imports) that is GDP= consumption+ investment + government expenditure.
Gross National Product (GNP) takes care of net exports that is GNP= consumption+ investment + government expenditure + net exports(exports - imports).

Answer 7

GNP is output produced by Nationals where ever they live. ie a US citizen in Japan making a toaster counts as GNP in the US. But does not include foreign nationals within the borders. ie the same US citizen living in Japan making the toaster would not be included in Japan GNP

GDP is output produced within borders ie the same person in Japan, the toaster would NOT be included in US GDP but would be included in Japan GDP

Answer 8

GDP is the countries wealth. The sum of money earned from Manufacturing, agriculture etc.

GNP is the average earnings per person.

A good explanation is on this link

Answer 9

You have to break the letters down.

G-means Gross or total amount.

P-means product or products created.

N-means a whole Nation or National

D-means Domestic or a localized area as small as a village or town.
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