GNP is an abbreviation of the Gross National Product which denotes the total monetary value of goods and services which have been produced in a given time period in a given country.
The GNP in practice: Similarly as the GDP, the GNP is used in macroeconomics to determine the performance of the economy of a country. The term product expresses an increase in wealth. For the calculation of the GNP it is not important, in what country the values were created; instead, the GNP considers citizenship. In contrast to the GDP the GNP includes foreign production stemming from production factors owned by the residents of a country and correspondingly does not include production which takes place on domestic soil but is owned by foreigners.
Example: The GNP of the USA does not include the production of a car which has been built on American soil by a German company. Instead, it includes all production of American companies which are located abroad.
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