BA 565 sub topic GNP and GDP

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BA 565: GNP and GDP

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Presented by: ​Ahiron, Marjorie and Cristobal, Selsheila

Learning objectives

​At the end this presentation participants would be able to:

1. Explain the Gross Domestic Product (GDP) and Gross National Product (GNP);

2. ​Describe activities for GDP and GNP;

3. Calculate the national income.​

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measures the value of goods and services produced by only a country's citizens but both domestically and abroad within a given period of time.

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​Gross National Product (GNP)

​Gawa Ng Pilipino

measures the value of goods and services produced within a country's borders, by citizens and non-citizens alike within a given period of time.

​Gross Domestic Product (GDP)

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​Gawa Dito Pilipinas

Multiple Choice

The shoes made in a Nike plant in Korea will be counted in U.S. GNP, but not GDP.

• True

• False

Multiple Choice

If a United States company manufactures widgets in Malaysia, the value of those widgets should be included in which of the following?

• United States' GDP and GNP

• Malaysia's GNP

• Malaysia's GDP and GNP

• The United States' GNP

Multiple Choice

Takatak vendors, taho and ice cream sellers are not part of economic activities in computing the national income of the Philippines.

• False

• True

Methods in computing National Income:​

• Income Approach

• Expenditure Approach

• Industrial Origin or ​Value Added Approach

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Subject | Subject

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• Income Approach

GNI= EC+ EI + CI + G

where:

EC is Employees Compensation

EI ​is Entrepreneurial Income

CI is Corporate Income

G is Government ​Income

Income 2020​ Semester 1

​Employees Compensation 3,834,722

Entrepreneurial Income 1,260,540

Corporate Income 2,893,403

Government ​Income Revenue 1,417,572​​

GNI = ​9,406,237

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GNI = C+G+CF+(X-M) +SD+ NFIA

Where:

C- Household Consumption

G- Government Expenditure

CF-Capital Formation

X- Gastos sa export

M- Gastos sa import

SD - Statistical Discrepancy

​NFIA - Net Factor Income from Abroad

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​Some text here about the topic of discussion.

• Expenditure Approach

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GNI = C+G+CF+(X-M) +SD+ NFIA​

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• Expenditure Approach

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​01.	​Household final consumption expenditure	6,230,088​
02.​	​Government final consumption expenditure	1,417,572​
​03.	​Gross capital formation	1,547,475​
​	​A. Gross fixed capital formation:	​1,879,204
​	​A.1 Construction	​1,174,638
​	​A.2 Durable equipment	​459,224
​	A.3​ Breeding stock and orchard development	​191,099
​	​A.4 Intellectual property products	​54,243
​	​B. Changes in inventories	​-332,119
​	​C. Valuables	​390
​04.	​Exports of goods and services	2,272,627
​	​A. Exports of goods B. Export of services	1,210,264 1,062,363

​05.	​Less: Imports of goods and services A. Imports of goods B. Imports of services	2,939,325 2,339,232 600,093
​06.	​Statistical discrepancy	​52,432
​	​Gross Domestic Product	​8,580,869
​	​Net Primary Income from the rest of the world	​825,368

GNI = 9,406,237

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GNI = Agriculture + Industry + Service + NFIA or GDP + NFIA

GNI = ​8,580, 869 + 825,368

9,406,237​

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​Some text here about the topic of discussion.

• Industrial Origin or ​Value Added Approach

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