What is the World GNP?

The world's gross national product (HNP) is determined by a combination of HNP of all countries that produce services or goods. HNP is the monetary value of the value of the goods and services produced by citizens or companies that are owned by its citizens per year. This is different from the gross domestic product, which only measures the production of the country, regardless of whether the participants are owned by its citizens or foreigners. When comparing or combination of HNP grounds, such as the calculation of world GNP, the currency of production countries usually transform into US dollars using certain exchange courses. Analysis of changes in the GNP world provides an interesting view of the overall world economy and how changes in technology and business affect individual country. It also provides information on the economic effect of natural disasters that can deactivate the country's production capacity.

Economists can also calculate HNP kaŽdé countries per capita, which measures their income per person. When taking into account the population data, it allows countries of different sizes to compare accurately in terms of the effectiveness and wealth of persons. For example, a GNP study on the basis of a chapel could reveal that a country that is five times larger than another country has HNP, which is only twice as large. This would tell economists that a smaller country is more efficient in creating wealth.

There are some shortcomings in the world's GNP figures. Many countries do not have the data given for inclusion in the world HNP for various reasons, such as the lack of actual goods production, a very small size of some nations or other factors. In addition, it is unlikely that the economic activity of OME, such as agricultural production of peasants or certain stock exchanges that do not include money, would be included in the GNP country.