GDP and GNP

Gross domestic product (GDP) measures the market value of all final goods and services produced by factors of production (such as labor and capital) located within a country/economy during a given period of time, generally a year or a quarter.

Gross national product (GNP), however, measures the market value of all final goods and services produced by factors of production (such as labor and capital) supplied by residents of a country, regardless of whether such production takes place within the country or outside of the country.

The difference: GDP includes, and GNP excludes, the production of goods and services by foreignerswithin that country, whereas GNP includes, and GDP excludes, the production of goods and services by its citizens outside of the country.