What are the components of Gross National Product (GNP)?
Answer Hello, Teresa: Gross National Income (GNI) comprises the total value produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries. The GNI consists of: the personal consumption expenditures, the gross private investment, the government consumption expenditures, the net income from assets abroad (net income receipts), and the gross exports of goods and services, after deducting two components: the gross imports of goods and services, and the indirect business taxes. The GNI is SIMILAR to the GROSS NATIONAL PRODUCT (GNP), except that in measuring the GNP one does not deduct the indirect business taxes. For example, the profits of a US-owned company operating in the UK will count towards US GNI and UK GDP, but will not count towards UK GNI or US GDP.
