Gross national product (GNP) is the total income earned by a country's factors of production in a year or a given time period, regardless of where assets are located (nations' output). Net national product (NNP) is the total market value of all final goods and services produced by residents in a country during a given time period.
GNP = GDP + 'Net' factor income from abroad Net Factor income from abroad = income earned by the domestic factors of production employed in the rest of the world - Factor income earned by the factors of production of the rest of the world employed in the domestic economy. For example, in case of India GNP at Factor Cost = GDP at Factor Cost + Net Income from Abroad - Depreciation; GNP at Market Price = GNP at Factor Cost + Indirect Taxes - Subsidies; NNP (Net National Product) NNP is derived from GNP by subtracting the value of depreciation. Net National Product (NNP) = Gross National Product (GNP) - Depreciation. The gross national product portion of the NNP formula includes all the final goods and services manufactured and produced within a nation with a period. Key points Gross national product, or GNP, includes what is produced domestically and what is produced by domestic labor and National income includes all income earned: wages, profits, rent, and profit income. Net national product, or NNP, is GNP minus depreciation. Depreciation is the process by Gross national product (GNP) is the value of all goods and services made by a country's residents and businesses, regardless of production location. GNP counts the investments made by U.S. residents and businesses—both inside and outside the country—and computes the value of all products manufactured by domestic companies, regardless of jstmaz.