Gross National Product – What is Gross National Product GNP economic performance ?

What is Gross National Product?

Definition of Gross National Product:
This is also known as GNP. It is regarded as a measure of the economic performance and contains the value of products and services created by the people of a specific country. It consists of the profits of those people earned by the overseas owned by the corporation and ones who work in the foreign countries. It is similar to the Gross Product and the gains made by the domestic firms in the foreign countries and the share of the reinvested gains in the domestic organizations in which the operations are foreign based. Gross Domestic explains the scope as per the location whereas the GNP explains its scope as per the ownership. GNP stands for Gross National Income. In the year 1991, US started using the GNP as the main production measure.