Business, Legal & Accounting Glossary
GNP. GDP plus the income accruing to domestic residents as a result of investments abroad, minus the income earned in domestic markets accruing to foreigners abroad.
Gross national product, or GNP, gives an indication of a country’s economic health. It starts with gross domestic product (the value of finished goods and services produced within a country) then adds in money earned overseas and subtracts money earned by foreigners within the country.
GNP gives a broader picture of a country’s economic activity than GDP, which is limited to the value of goods and services produced within a country’s borders. GNP adds the value of goods and services produced in other countries by companies based in the home country. It excludes the value of goods and services that are produced within the home country by foreigners.
If an American works in France, his salary will be part of the United States GNP. If a French person works in the U.S., her salary will be subtracted from U.S. GNP. The value of products that an American company produces at its Chinese factory is part of U.S. GNP, while the value of products a Japanese company produces at a factory in the U.S. is not part of U.S. GNP.
If you want to do business with a new country for the first time you may want to know what their gross national product is.
Mostly due to exports, the gross national products of BRIC economies are growing at a much faster pace than those of most of the rest of the world.
When our CEO met with the President of the United States, he joked that the president should be grateful for our overseas investments because those investments returned dividends to America that increased our overall gross national product.
GNP
Gross Domestic Product
GNP deflator
net national product
Net Domestic Product
economic growth rate
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This glossary post was last updated: 13th April, 2022 | 0 Views.