Distinguish between: Gross National Product and Net National Product

Distinguish between:

Gross National Product and Net National Product

Basis
Gross national product
Net national product
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.

NNP refers to the value of all final goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
2. Depreciation
It includes depreciation.
It excludes depreciation.

3. Treatment as national income
GNP cannot be treated as national income.
NNP is treated as national income only at factor cost.

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