Difference: Gross National Product at market price (GNP at MP) and Gross National Product at Factor Cost (GNP at FC)

Gross national, product includes total value of goods and services produced within or outside the country by. Its citizens. Gross national product at market, price is the aggregate money value of all the final goods and services produced annually in a country plus net factor incomes from abroad. In other words GNP at market price means the total incomes earned from both internal and external territories. Thus GNP is a broader and comprehensive concept than GDP. In short it is the aggregate values of GDP + Factor incomes from abroad. Net factor income can be arrived at by deducting the factor incomes earned by the foreigners from our country from the factor income earned by our residents from abroad. Thus Gross national product at market price = Gross domestic product at market price + Net factor income from abroad.

Gross National Product at factor cost is calculated by adding net factor income from abroad to the gross domestic product of factory cost. Gross domestic product at factor cost is the amount that includes both net domestic product at factor, cost and depreciation. Thus GNP at factor cost = Gross domestic product at factor cost + Net factor income from abroad.