GNP vs GDP
Differences
(GDP) Definition
Gross national product is GDP plus net factor income from abroad which is calculated by adding up the value of goods and services produced by the citizens' production factors.
(GDP) Definition
GDP stands for Gross Domestic Product which calculates the amount of the value of goods and services in a country produced by factors of production belonging to citizens and foreigners living in the country.
Task: After you comprehend the GNP concept and identify the difference between GNP and GDP, let's do a fun learning session by making a mind map about these topics.
Sources:
The difference between GNP vs GDP (Academic Infographic)
https://www.thebalance.com/what-is-the-gross-national-product-3305847
What is Gross National Product | GNP (Article) https://www.business-standard.com/about/what-is-gross-national-product-gnp
GNP vs GDP (Short Video)
(GNP) How It Work:
GDP plus net factor income from abroad which is calculated by adding up the value of goods and services produced by the citizens' production factors
(GDP) Formula
(GNP) Formula
Formula: Y = C + I + G + NX + Z
Y : Gross National Product (GNP)
C : Consumption
I : Investments
G : Government
NX : Net Exports
Z : overseas investments net income - domestic investments net income
Formula: Y = C + I + G + NX
Y : Gross Domestic Product (GDP)
C : Consumption
I : Investments
G : Government
(GDP) How It Work:
Calculates the amount of the value of goods and services in a country produced by factors of production belonging to citizens and foreigners living in the country.