Whittier
03-12-2003, 02:58
Some NSers mistakenly think that GDP is the total of all the money in your nation.
Actually, GDP, which is Gross Domestic Product, is the measure of the value of all the goods and services made in your nation.
This includes goods made by comanies located in your nation but which are owned by foreigners. The products and services their company makes, would add to your nations GDP (not theirs) if the branch in question is located in your country.
GDP should not be confused with GNP which is Gross National Product.
GNP is a measure of the total value made by your nation and its citizens.
Regardless of whether your citizens company is in a foriegn nation, the stuff it produces still adds to your GNP but not to the host nations.
Both are measures of the total value of goods produced. GDP measures the value of goods and services produced INSIDE your nation.
GNP measures the total value of goods produced BY your nation.
It is not affected by the tax rate, but might be affected by civil rights.
However, with the total amount of actual money circulating in your nation, it is the opposite. Taxes matter most while civil rights matter least. (Except for very local economies on the level of a city or town.)
Actually, GDP, which is Gross Domestic Product, is the measure of the value of all the goods and services made in your nation.
This includes goods made by comanies located in your nation but which are owned by foreigners. The products and services their company makes, would add to your nations GDP (not theirs) if the branch in question is located in your country.
GDP should not be confused with GNP which is Gross National Product.
GNP is a measure of the total value made by your nation and its citizens.
Regardless of whether your citizens company is in a foriegn nation, the stuff it produces still adds to your GNP but not to the host nations.
Both are measures of the total value of goods produced. GDP measures the value of goods and services produced INSIDE your nation.
GNP measures the total value of goods produced BY your nation.
It is not affected by the tax rate, but might be affected by civil rights.
However, with the total amount of actual money circulating in your nation, it is the opposite. Taxes matter most while civil rights matter least. (Except for very local economies on the level of a city or town.)