GDP vs. GNP

The speaker of this video covers the difference between GDP (Gross Domestic Product) and GNP (Gross National Product).  He suggests that the GDP measures economic output based on the location that the good was produced.  GNP measures the economic output in terms of ownership.  Therefore, if the resources that produce the economic output are owned by a US company, it will be included in the US GNP.  He illustrates his point with two examples, one with a foreign company producing goods in the US and one with a domestic firm producing goods overseas.

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