Forex Questions and Answers - FXAnswer

GNP stands for Gross National Product, which is the combined value of all the final goods and services produced in a country during an accounting year, including net factor income from foreign countries.

GNP can be measured at:

Current market prices (Nominal GNP): In this method, the prices of goods and services are measured at prices prevailing in the current year.


Constant prices (Real GNP): Using this method, GNP is measured at a fixed price of a particular base year.
Real GNP is an effective tool for making yearly comparisons of changes in the physical output of a country, as it is not affected by changing prices. This helps to reflect the economic growth of a country in a better manner.

by

Suneetha

1 year ago

Gross national product/capita

These maps show the changing distribution of Gross National Product/capita. Gross National Product is the total value added from domestic and foreign sources claimed by residents of a country. In other words it is GDP (Gross Domestic Product, the value of goods and services produced within a country) plus net income received by residents from non-resident sources. GNP/capita is the total divided by the number of people in the country. In other words, GNP/capita is a measure of national income per person.

What the maps suggest

This sequence of maps suggests that the global pattern of national income has remained remarkably stable in the period 1960-99. There is a below $2 per day region of the world, including most of Africa and Asia. Then there is a high-income group, with GNP/capita exceeding $10,000 per year, which includes the industrialized north of the globe and Japan, primarily the OECD countries. In between, there are the countries of Latin America, some countries in North and South Africa, and since 1990 (when data becomes available), most of eastern Europe in a range of middle incomes, with GNP/capita in the range $730 to $10,000.

This stable pattern of income ratios is disrupted primarily by one region. In South East Asia, the ‘East Asian Miracle’ economies have managed to move out of the $1 per day group and into the middle income range. The East Asian miracle countries started as a group of four: South Korea, Taiwan, Hong Kong and Singapore. World Bank (1993) suggests inclusion of Malaysia, Thailand, Japan, Indonesia. In the 1990s, China is also recorded as making a similar shift from $1 per day to middle income.

The Data

There are several different ways of comparing GNP/capita. In this set of maps, GNP/capita is measured in constant 1995 US dollars. This means that national incomes are compared using foreign exchange rates (rather than the purchasing power of local currency; see also purchasing power parity). We have a separate presentation looking at GDP/capita measured using purchasing power parity. Constant dollars means that an attempt has been made to remove the effects of changes in the value of money from these data. These data come from the World Bank's World
Development Indicators 2001.
Problems of using GNP/capita as a poverty line

GNP/capita is a measure of average national output. There are at least two kinds of problems with this as a measure of individual incomes:
Problems of measurement. Non-monetized activities may be poorly estimated (eg the products of peasant agriculture) or excluded (eg domestic work maintaining the home).
Problems of conceptualization. GNP/capita is a simple average of output divided by number of people. So it does not say anything about the distribution of national income between rich and poor.

What we can say is that GNP/capita provides a rough estimate of average national productivity and national productivity.

by

thegreeks

1 year ago

A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), and net national income (NNI). All are specially concerned with counting the total amount of goods and services produced within some "boundary". The boundary may be defined geographically, or by citizenship; and limits on the type of activity also form part of the conceptual boundary; for instance, these measures are for the most part limited to counting goods and services that are exchanged for money: production not for sale but for barter, for one's own personal use, or for one's family, is largely left out of these measures, although some attempts are made to include some of those kinds of production by imputing monetary values to them.
http://en.wikipedia.org/wiki/ Measures_of_national_income_and_output

by

thegreeks

1 year ago

Gross national product was formerly used as a measure of a country's overall economic activity, equal to GDP less compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world; GNP has been renamed gross national

by

hanan

1 year ago

measure of an economy's economic performance. It is the market value of all goods and services produced by the residents of a particular country. It includes the income of those residents earned by corporations owned overseas and from working abroad.

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hanan

1 year ago

Value of all goods and services produced in a country in one year, plus income earned by its citizens abroad, minus income earned by foreigners in the country.

by

hanan

1 year ago

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. Basically, 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.

InvestorWords.com

by

Warren

1 year ago

Economic growth is measured in terms of an increase in the size of a nation's economy. A broad measure of an economy's size is its output. The most widely-used measure of economic output is the Gross Domestic Product (abbreviated GDP).

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certicex

1 year ago