|
Gross National Product measures the aggregate final output of businesses and citizens over a one-year period much like GDP. This means that the economic activity of United States citizens that are working abroad is counted as GNP and not as GDP. But when a Japanese worker is working within the geographical boundary of the United States, he or she will be counted in Japan's GNP and the United States GDP not GNP.
The difference between GDP and GNP is called the net foreign factor income. This is the foreign income that is earned domestically subtracted from income received from foreign domestic sources. In many countries there are significant differences between their GDP and GNP.
|
