Gnp mba

Sir I am a MBA student and I need the detail of the term GNP as this is included in my curriculum so can you tell me the same

[Kiran Chandar]

Hey the Gross National Product. GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.



Calculations

Algebraic expression under expenditure approach is,

GDP=C+I+G+(X-M)

Where,
C=Consumption
I=Investment
G=Government expenditure
(X-M)=Export minus import

Importance of GNP

It measures both the size and direction of economic activity (growth, stagnation or contraction) – expansions and recessions are based on changes in GDP


GNP measures the value of goods and services that the country's citizens produced regardless of their location.

GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal.




Persons who deal with it

Politicians,

Economists,

Large companies (especially multi-nationals)