GDP is the total market value of all domestically produced final goods and services for a particular year. Its five key factors are: market value, final goods and services, produced, within a country, during a specific time period.
GNP is the total market value of all final goods and services produced by the citizens of a country. It measures the output that is produced by the "nationals" of a country. This figure is the output generated by the labor and capital owned by the citizens of the country, regardless of whether that output is produced domestically or abroad. Consider the case of the United States. GNP is the income earned by Americans, regardless of whether that income is earned in the United States or abroad. It omits the income foreigners earn in the United States, but counts the income that Americans earn abroad. It is equal to GDP minus the net income of foreigners.
GNP = GDP + Income received by citizens for factors of production supplied abroad - Income paid to foreigners for the contribution to domestic output
In short, GNP measures the worldwide output of a nation's citizens while GDP measures the domestic output of the nation.
| Shaan23: Seems like people have just quit on Global trading section. There's barely any comments throughout these sections.|
This is how the CFA will be passed or failed. Dont SKIP. It's an easy section. Dont just stop when you get near the end of chapters.
|Inaganti6: Or they've chosen not to comment here....gotta critique those underlying assumptions ....a lapse in critical thinking skills hadn't been good for anyone|
|mvferri: tensions absolutely FLARING in the comment section|