Explain why the GNP and GDP are different?

Answer 1

A country's Gross Domestic Product, or GDP, is the amount of goods and services, measured at market prices, produced within the country during a particular time period (usually a year). Gross National Product, or GNP, is the amount of goods and services produced by residents of a country, regardless of where that production takes place.

A country's Gross Domestic Product, or GDP, is the amount of goods and services, measured at market prices, produced within the country during a particular time period (usually a year). Gross National Product, or GNP, is the amount of goods and services produced by residents of a country, regardless of where that production takes place.

Remember, GDP concern is BORDER, whereas GNP concern is PRODUCER.

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Answer 2

GNP (Gross National Product) measures the total market value of all final goods and services produced by a country's residents, regardless of where they are located, while GDP (Gross Domestic Product) measures the total market value of all final goods and services produced within a country's borders, regardless of the producers' nationality. The primary distinction between the two is that GNP includes income earned abroad by a country's residents and excludes income earned domestically by foreigners, whereas GDP includes income earned domestically by both residents and foreigners while excluding income earned abroad by residents.