0
GDP (Gross Domestic Product) is a commonly used calculator of national income and measures the economic activity in a country. Essentially, the GDP is a figure which measures the value of the goods and services produced in a country in a given time period (usually one year).
GNP (Gross National Product) is also a calculator of economic activity. However, GNP also encompasses the value of net income made abroad. Moreover, when calculating GNP, the value of what foreign countries earn in the given country is subtracted from the value.
To clarify, let us use an example:
If a US business had a manufacturing plant located in China, any profit made by the plant would not be calculated in the GDP, but would be accounted for in the GNP.
If a Canadian business has a manufacturing plant located in the US, any profit made by the plant would be included in GDP, however it would be subtracted from the value of the GNP.
Consequently, those both GDP and GNP are measures of economic activities, the two values can be extremely different.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is the relationship between human capital and GDP?
it is that the human capital is one thing and the gdp is another thing.
What is the relationship between NMR and GDP?
NMR, Nuclear Magnetic Resonance, is the scientific technique which makes possible the MRI machine, Magnetic Resonance Imaging. GDP, Gross Domestic Product, measures the total economic productivity of a nation in a given year. The relationship between these two items would be that only a nation with a healthy GDP would be able to afford to use the expensive MRI device in its hospitals.
What is the relationship between oil price and GDP of a country?
Well we know that oil prices are a major cost for firms and consumers. When oil prices increase consumption and investment will fall, leading to a fall productivity and in aggregate demand, which we all know is equivalent to GDP.... right?
What is the Contribution of petroleum industry towards GDP of India?
The Role of Oil and Natural Gas Industry in India GDP is very significant as it is one of the biggest contributor to both the Central and State treasuries.
Which is the richest state in India?
The richest state in India is Maharashtra. It is one of India's most prosperous states, having a per-capita income is highest in country and GDP is almost double than any single state in country. It contributes to 40% of industrial production in india and 15% of GDP .. Its hub for IT , AUTOMOBILES, FINANCE,EDUCATION AND HELATHCARE.. Its GDP is double than other competing states in country
What is the relationship between human capital and GDP?
it is that the human capital is one thing and the gdp is another thing.
What is the relationship between aggregate expenditure and real GDP?
There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.
What is the relationship between net exports and GDP?
The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise
What is the relationship between investment in human capital and GDP?
teeth
The relationship between current account balance and GDP?
The relationship between the current account balance and the GDP is that they both reflect the production in the given economy. They both deal with the net production.
What is the relationship between GDP per capita and life expectancy?
There is a positive correlation between GDP per capita and life expectancy, meaning that as GDP per capita increases, life expectancy tends to increase as well. Higher GDP can lead to better access to healthcare, improved living conditions, and overall better quality of life, which can contribute to increased life expectancy.
What is the relationship between investment in capital and GDP?
they both have the same influential factors
What is the relationship between investments and GDP?
both make more efficient products
What is the relationship between investment in capital goods and GDP?
they both have the same influential factors
What is the relationship between GDP and exchange rate?
GDP or gross domestic product is not directly related to the exchange rate. One rate theories are used to accurately report GDP. Universal rates apply in the reporting figures used.
What is the relationship between NMR and GDP?
NMR, Nuclear Magnetic Resonance, is the scientific technique which makes possible the MRI machine, Magnetic Resonance Imaging. GDP, Gross Domestic Product, measures the total economic productivity of a nation in a given year. The relationship between these two items would be that only a nation with a healthy GDP would be able to afford to use the expensive MRI device in its hospitals.
What is the relationship between GDP and bond prices?
Gross Domestic Product (GDP), which is the statistic used to measure the economy. Bond Prices are usually expressed at a percent of face and are usually quoted in 30 seconds.
