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GNP Formula

GNP, or Gross National Product, refers to the market value of all goods and services produced by a nation during a specific time period. It's simply the GDP of the country, plus income earned from overseas investments by residents, minus income earned within the domestic economy by overseas residents.

GNP measures a nation's economic performance, rather than GDP does that with a geographic region's; it's what its citizens produced, no matter where they produce it.

The more GNP differs from GDP, the more a country is involved in international trade and finance. For instance, Japan stands out in this type.

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