GDP vs GNP (1 Viewer)

[aditya]

whats the difference between these two? GNP and GDP

do they have ads/disads if so what are they?


also could someboyd please outline the problems associated with using GDP as a measure?

Thank you

 

[santaslayer]

isnt GDP and GNP the same...they measure the same thing, just different wording
flaws in the GDP measure are outlined in ur textbook......

 

[Zarathustra]

I thought that GNP included exports minus imports whereas GDP only includes domestc products - hence the name. Oh wait... I had a look - I'm right Columbia Encyclopaedia

The GNP equals the gross domestic product plus income earned by domestic residents through foreign investments minus the income earned by foreign investors in the domestic market. Gross domestic product, often confused with GNP, is calculated from the total value of goods and services produced in an economy over a specified period.

 

[aditya]

i love this place....


thanks alot guys...

 

[Zarathustra]

I suppose the disadvantages associated with GDP would be that it doesn't take into considerstion the investment of foreigners into the domestic market and the investment of compatriots in overseas markets - whereas GNP does - or maybe the fact that it isn't CPI adjusted (I don't think) so compare it to real GDP.