The gnp full form is Gross National Product. The Gross National Product (GNP) is a calculation of the total value of all final goods and services produced by people of a country in a particular period.
G = Gross
N = National
P = Product
Personal consumer spending, private domestic investment, government expenditure, net exports, and any income gained by locals from foreign investment, as well as income earned by foreign residents in the domestic economy, are normally subtracted from GNP. Net exports are the sum of a country’s exports minus its imports of goods and services.
GNP vs. GDP: What’s the Difference?
The fundamental distinction between GNP and GDP stems from the fact that there might be corporations owned by foreign residents that create goods in the country, as well as companies owned by domestic people that are owned by the rest of the globe.
Produces items for parts and gives the money back to the people that live in the country. Many foreign corporations, for example, create goods and services in the United States and send earned revenue to their overseas employees.
Similarly, many American corporations create goods and services outside of the country and benefit from the locals. If money earned by domestic corporations outside the United States exceeds income made by corporations owned by foreign citizens in the United States, the United States’ GNP exceeds its GDP.