Gross Domestic Product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period. the main tool for measuring the country's economy. Gross Domestic Product - High World 69,899,225 1 United States 15,075,675 2 China 7,298,147 3 Japan 5,866,540 4 Germany 3,607,364 5 France 2,778,085 6 Brazil 2,492,907 7 United Kingdom 2,431,310 8 Italy 2,198,732 9 Russia 1,850,401 10 India 1,826,811 Gross Domestic Product - Low 174 Grenada 819 175 Vanuatu 760 176 Saint Kitts and Nevis 715 177 Saint Vincent and the Grenadines 688 178 Samoa 634 179 Comoros 614 180 Dominica 483 181 Tonga 439 182 São Tomé and Príncipe 248 183 Kiribati 167 184 Tuvalu 36 Gross National Product (GNP) The total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living. Top GNP Countries Rank 2011 2010 15,097,083 United States 2009 1 United States 14,648,955 United States 14,135,520 2 China 6,628,086 China 5,717,592 China 4,822,913 3 Japan 5,774,376 Japan 5,359,236 Japan 4,793,538 4 Germany 3,594,303 Germany 3,513,807 Germany 3,472,823 5 France 2,775,664 France 2,745,670 France 2,742,735 6 United Kingdom 2,366,544 United Kingdom 2,373,636 United Kingdom 2,532,124 7 Italy 2,146,998 Italy 2,149,222 Italy 2,141,109 8 Brazil 2,107,628 Brazil 1,859,414 Brazil 1,575,897 9 India 1,746,481 India 1,539,419 Spain 1,469,901 10 Canada 1,570,886 Canada 1,475,865 Canada 1,412,899 The difference is… GDP defines its scope according to location GNP defines its scope according to ownership. What is a Multinational Corporation? is a corporation enterprise that manages production or delivers services in more than one country. Many countries fight to have MNCs as they can lead to increased tax revenue, employment, and economic activity. In many cases governments offer MNCs incentives such as tax breaks, pledges of governmental assistance or lax environmental and employment regulations. Multinational Corporations In the 70’s and 80’s large multinational corporations (Nike, Adidas, Gap, Ralph Lauren) started to leave the north for the south because of labour and environmental regulations. Ex: rising minimum wages, and emissions control laws Multinational Corporations MNCs invested money in the southern economies, but only invested with the interest of boosting economic growth, and not improving social conditions Many countries have limited choices. Either the people accept unfair terms of employment by the MNCs or the country tries to borrow more money through the IMF to help their ailing economies. How many do you know? http://www.sporcle.com/games/g/corplog os