Distinguish between: 1) Gross national product and Gross domestic product

Distinguish between:

1) Gross national product and Gross domestic product

Basis
Gross National Product(GNP)
Gross Domestic Product(GDP)
1. Definition
GNP takes into account all the goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
GDP refers to the market value of all final goods and services produced within the domestic country during an accounting year inclusive of depreciation.
2. Net factor Income from abroad
It includes the net factor income from abroad.
It excludes the net factor income from abroad.
3. Formula
GDP = Consumption + Investment + Government expenditure + (exports
GNP = GDP + (R – P)
R = Net income inflow from assets abroad
P = (Net payment outflow to foreign assets).

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