Question

HOLA MATES DIFFERENCE BETWEEN ....

GDP and GNP....

best of luck

Answer 1

Both the terms GDP and GNP are very close to each other, and the difference between them is an intricate component.

I will try to explain in plain terms -

1. GDP (Gross Domestic Product) : is the money value of all the goods and services produced within a country.

So GDP of UK is the value of all the goods and services produced withinthe UK during the given year.

2. GNP (Gross National Product) : is the money value of all the goods and services produced by the RESIDENTS of a country.

Residents refer to the people and corporations that normally reside in a country for more than 1 year, and work there.For example, an Australian national working in Canada for 2 years, is a Resident of Canada and not of Australia.

GDP vs. GNP -

GDP measures the value of commodities(goods+services) produced within the country, no matter whether produced by Residents or non-residents (country concept).GNP measures the value of commodities produced by all the RESIDENTS, no matter whether produced within the country or abroad (resident concept).Example - An Indian national, say Mr. Roy is working in France for less than 1 year:He contributes to French GDP as he is working in France.But he also contributes to Indian GNP as he is an Indian Resident, working abroad.So GNP of India is the money value of all goods and services produced by all the residents of India during the given year.

Answer 2

GDP vs. GNP -

GDP measures the value of commodities(goods+services) produced within the country, no matter whether produced by Residents or non-residents (country concept).GNP measures the value of commodities produced by all the RESIDENTS, no matter whether produced within the country or abroad (resident concept).Example - An Indian national, say Mr. Roy is working in France for less than 1 year:He contributes to French GDP as he is working in France.But he also contributes to Indian GNP as he is an Indian Resident, working abroad.So GNP of India is the money value of all goods and services produced by all the residents of India during the given year.