Gdp vs. Gnp Essay
GDP (or Gross Domestic Product) and GNP (Gross National Product) represent the size and strength of the economy. While both concepts are similar, their definition, calculation and applications are different from each other.
All attributes Differences Similarities Improve this chart | GDP | GNP | Definition: | An estimated value of the total worth of a country’s production and services, calculated over the course on one year | GDP (+) total capital gains from overseas investment (-) income earned by foreign nationals domestically | Stands for: | Gross Domestic Product | Gross National Product | Formula for Calculation: | GDP = consumption + investment + (government spending) + (exports − …show more content…
GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time.
The most common approach to measuring and understanding GDP is the expenditure method: GDP = consumption + investment + (government spending) + (exports – imports), or, GDP = C + I + G + (X-M) edit How GNP is calculated
There are various ways of calculating GNP numbers. The expenditure