Distinguish betweenGDP and GNP?
Answers
Distinguish between GDP and GNP?
Answer:
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Explanation:
The aggregate of all the goods and the services generated within the country’s geographical limits is known as GDP and the aggregate of all the goods and services generated by the citizens of the country is known as GNP.
GDP considers the production of products within the boundaries of the country. and on the other hand, Gross national product measures the production of products by the companies, industries and all other firms owned by the country’s residents.
The fundamentals for calculating the gross domestic product is the location, while GNP is based on citizenship.
With the case GDP, the calculation of productivity is done on a country’s scale while we talk about a gross national product, its calculation is the productivity on an international level.
Gross domestic product focuses on calculating domestic production, but GNP only considers the production by the individuals, firms, and corporations, of the country.
GDP measures the strength of a country’s domestic economy. On the other hand, the gross national product measured how the residents are contributing to the country’s economy.