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It is equal to the Gross Domestic Product (GDP) minus the net income of the foreigners. For example a Jamaican resident has invested in America, it would still be valued as GNP not GDP because Gross domestic Product (GDP) has not only to do with goods and services within the borders of a country. However GNP is used to measure economic growth, it is believed to be equal with the health of the economy and economic progress. GNP is use to measurement to see if it can truly reflects the economic welfare and growth of a country and especially in relation to the poor countries. As it is important for a country to grow and that the benefits of growth must reach all of the society Thus concepts like GNP and GDP have come into being to reflect the actual state of the economy...
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