Two national accounting systems, Gross Domestic Product and Gross National Product are different.
From a dollars and sense article
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.
Doesnt matter much for the US,
In 1999, the U.S. GDP -- again, the amount of goods and services produced within the country's geographic borders -- was $9,299 billion. Payments to U.S. residents -- including U.S.-based firms -- from their activities in the rest of the world contributed $306 billion and payments to foreign residents from their activities in the U.S. subtracted $317 billion, resulting in a GNP of $9,288 billion. So for 1999, GNP was 99.88% of GDP -- not much difference.
But for developing countries, GDP might not be a great indicator of financial performance. If a nation has a high percentage of FDI, and the profits are repatriated, they'll have a high GDP, but not a commenserate raise in available capital or living standards.
Apparently the switch from using GNP to GDP happened about 15 or 20 years ago. As globalisation was kicking off... interesting.
A little clairifying example from the article:
In national accounting, the incomes that people obtain are taken as measures of the amount they produce. If firms obtain profits from the production of a good, then those firms are credited with producing that good to the extent of their profits. Thus, when U.S. investors obtain $100 million as profits from production in Mexico, that $100 million is counted towards the U.S. GNP, not towards the Mexican GNP. Yet the $100 million gets counted as part of the Mexican GDP, not the U.S. GDP, because the production takes place within the geographic boundaries of Mexico.
Many politicians compare defense spending to the GDP and say that is is less than previous years (percentage wise). How many times has the GNP and GDP been redefined since WWII. I seem to remember that it originally consisted of produced goods, and not services. I fail to see how a person spending $100 for a doctor visit adds any value to the GDP or GNP; also, the mergers and paper transactions that compress industry and eliminate jobs doesn't seem to me to add to our value.
Thank you, Larry R.
Posted by: Lawrence Robideau | February 06, 2008 at 04:21 PM
very bad
Posted by: xyx | November 19, 2008 at 06:16 AM
your all a buncha hosers!!!!
Posted by: J-mo | June 14, 2009 at 11:41 AM
Yea, hoser, what that other dude said
Posted by: Ethan Allen Poe | June 14, 2009 at 10:47 PM
Thanks a lot for a bunch of good tips. I look forward to reading more on the topic in the future. Keep up the good work! This blog is going to be great resource. Love reading it
Posted by: dissertation writing help | August 08, 2009 at 12:42 AM
What a great blog, you write so interesting things about good stuff
i would like to stay in touch with your blog, thanks!!!
Remo Buccho
Via Nicola Mignogna, 145
80030-Scisciano NA
Posted by: buy viagra | May 21, 2010 at 06:23 PM
Yeah, that's very bad.
Daniel Ferris
Posted by: tractor rentals | May 27, 2010 at 11:23 AM
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.
Posted by: guanacaste costa rica | July 17, 2010 at 10:41 PM
This is why i visit you site daily. Great read thanks. Incidently http://www.rapidmediafire.com has a similar topic.
Posted by: Duncan | July 20, 2010 at 03:36 AM
After watching your blog, I really like you. I feel the introduction is attractive. I really like your product. We are some different product, welcome to our website.http://www.obhandbags.com/
Posted by: Juicy Couture Handbags | July 26, 2010 at 02:43 AM
Hi, I love your design and am interested in learning more about how the project is going.
This is just the most wonderful house I have seen ever, absolutely brilliant. Kepp up the good work.
Posted by: viagra online | August 14, 2010 at 04:46 PM
Hello Adam,
You have been provided very interesting information about Gross National Product, or GNP... Really your blog is found me very helpful. Keep posting... I'm looking for some more info on GNP.
Thanks!
Posted by: buy online generic viagra | September 17, 2010 at 05:48 AM
Hi Dear, Really this is great information about GNP.... i found this post very helpful.... Thanks for the share.
Regards,
Sam Woods from NY
---------------------------
http://www.raymeds.com
Posted by: Sam Woods | October 15, 2010 at 07:38 AM
Your description should not use "profits"; it is "market prices" that is tallied. The idea is that foreign firms in host country employ workers and buy input materials within host country. Therefore, it makes sense to look at GDP too in addition to GNP. Profits are not always repatriated, especially when the company's HQ country has high relative taxes to host country.
Posted by: EB | November 25, 2010 at 05:23 AM
Very interesting post... something really informative... I wish to read something like this again... we keep coming back to your blog..
Posted by: Generic Viagra | December 21, 2010 at 09:06 AM
You are just too true to be good. How do you manage to write and research on such wonderful things?
Posted by: Generic Viagra | January 03, 2011 at 01:50 AM
Wow, nice post,there are many person searching about that now they will find enough resources by your post.Thank you for sharing to us.Please one more post about that.
Posted by: Stainless Steel House Hold | March 25, 2011 at 05:07 AM
It's obviously they are two different things. Thanks for letting the people know the similarities and difference.
Posted by: gloves for work | March 29, 2011 at 11:26 PM
Wow! what an idea ! What a concept ! Beautiful .. Amazing � :)
Posted by: Shoulder Bags | July 18, 2011 at 09:35 PM
Thanks mate... just dropped by. Will look for BIKE STN when we get to Seattle. Still in Buenos Airies.
Posted by: kamagra | July 25, 2011 at 06:14 PM
Please one more post about that.I wonder how you got so good. This is really a fascinating blog, lots of stuff that I can get into. One thing I just want to say is that your Blog is so perfect
Posted by: viagra online | August 03, 2011 at 07:27 AM
You are just too true to be good. How do you manage to write and research on such wonderful things?
Posted by: air max 90 | August 18, 2011 at 04:51 AM
I really enjoy simply reading all of your weblogs. Simply wanted to inform you that you have people like me who appreciate your work. Definitely a great post. Hats off to you! The information that you have provided is very helpful.
Posted by: buy ritalin online | August 22, 2011 at 03:59 PM
Great work on the solution. Keep it up! I'm really amazed by the quality of service that you have been providing through this blog.
Posted by: buy Lortab online | August 23, 2011 at 03:27 PM
Amazing!I also wish him good luck to defend his gold medal. I like to share it with all my friends and hope they will also encourage him.
Posted by: "best organic seo services" | August 23, 2011 at 04:34 PM