Compare Gross Domestic Product and Gross National Product.

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lizedwards eNotes educator| Certified Educator

Gross Domestic Product (GDP) and Gross National Product (GNP) are both ways to measure the size and strength of an economy. They do so by measuring the market value of all goods and services that are produced for final sale in an economy. They are calculated in different ways and often have different applications.

Gross Domestic Product
Gross Domestic Product (GDP) is an economic calculation of the monetary value of all finished goods and services that are produced within the physical boundaries of a country. The GDP may be calculated on an annual or quarterly basis.
 
Gross National Product
Gross National Product (GNP) is an economic calculation of the monetary value of all finished goods and services that are produced by a country's residents. The GNP may be calculated on an annual or quarterly basis.
 
GDP vs. GNP
The main difference between Gross Domestic Product and Gross National Product has to do with the physical location of the economic activity. The GDP is calculated based on economic activity within a country's borders; the GNP is calculated based on the economic activity of a country's residents that could be located anywhere in the world.