Wednesday, July 30, 2008

Difference between GDP & GNP

Since difference between GDP & GNP table is not coming properly I am posting it again.....


GDP

GDP (Gross Domestic Product)
is defined as the total market value of all final goods and services produced within the country’s geographic border in a given period of time (usually a calendar year).

GDP measures economic output based on location.

An American company with a plant in India will actually contribute to Indian GDP.

GNP

GNP (Gross National Product) measures the total amount of goods and services that a country's citizens produce regardless of where they produce them.

GNP measures economic output based on ownership

An American firm operates a plant in Indian, then the profits that the firm earns would contribute to U.S. GNP.


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