In today's world, even in a simple, non-economic student will still be on hearing the different financial terms of macro- and microeconomic indicators, - up to accounting to taxation.Link popularity terminology so necessary for a society of science can be a variety of events.However, few would disagree with the fact that living conditions in the market economy, encourage people to keep up with the information flow.This way of life is helping people maintain personal competitiveness as a manpower, increase financial awareness in order to accumulate capital, to ensure the necessary level of tax literacy for elementary survival as entrepreneurs and ordinary taxpayers, especially in our country.But such terms of economics, as GDP and GNP, in turn, are the most important macroeconomic indicators, about which exact day hear any member of modern society.They determine the level of development of each country, prosperity of its citizens, a role on the world political arena, the ability to influence certain events affecting its interests in the sector and many other indicators.
Although these two concepts are almost equally important for the economy of any state, but they have a precise economic definition, which summarizes all of the above, the importance.So what is the GDP and GNP?
gross domestic product (GDP) is the total volume of the entire production (in value terms), the produced economic entities within the state, regardless of their residency.
gross national product (GNP) is the total volume of material goods produced by business entities of the state, regardless of their location - within or outside the country.
Thus, the difference between GDP and GNP is the total value of the differences between material wealth produced in the country by residents and nonresidents of the state, and the value of goods produced abroad, but only residents of the country.That is, the ad valorem component of the totality of products produced in Russia and restated the relevant organizations, regardless of who the factories owned by its production, will be called GDP.Products produced by Russian plants and factories, no matter on whose territory it was produced country - is the GNP.In addition, although GDP and GNP - the notion, often appearing together in the information flow of modern society, they are not interchangeable indices.In fact, their use is shared with the comparative purpose, to determine the difference between the values.With the help of the established balance of the GDP and GNP figures, economists are able to analyze the situation in the country, to identify the causes of various events affecting the country's economy, as well as to determine the impact of tools to improve its provisions.
GDP and GNP also include not only products, which increases the welfare of the society, but also one that is aimed at restoring the consumed goods or products which have undergone wear.Nevertheless, the growth of these indicators taken to compare with the growth of the prosperity of society.While equating such data may in many cases be incorrect.
