In the previous Economic Insight we introduced the concept of GNP, or Gross National Product. For decades this was the major macro-economic indicator of final output produced for the economy over a year’s time.
As the world became more internationalized, and as increasing numbers of companies became more globalized, the measurement of GNP became ever more difficult, especially in the attempt to identify what would be “national” product (which could be produced anywhere in the world). So the concept was updated to GDP — or Gross Domestic Product.
Read the rest of this entry »
