11-26-2004, 09:57 AM
Gross Domestic Product (GDP) is the most commonly used indicator of national income. It attempts to measure the sum of incomes received by the various wealth creating sectors of the economy manufacturing, agriculture, service industries.
The figures are 'gross' because GDP does not allow for the depreciation of physical capital - wear and tear on factory machines, office equipment becoming outdated etc.
When the value of income from abroad is included - what domestic companies earn abroad minus what foreign companies earn here and expatriate - then the GDP becomes the Gross National Product (GNP).
Regards
DT
The figures are 'gross' because GDP does not allow for the depreciation of physical capital - wear and tear on factory machines, office equipment becoming outdated etc.
When the value of income from abroad is included - what domestic companies earn abroad minus what foreign companies earn here and expatriate - then the GDP becomes the Gross National Product (GNP).
Regards
DT
