Question

What is national product minus domestic product equal to?

Answer 1

National product minus domestic product equals Net Factor Income from Abroad.

National Product − Domestic Product = Net Factor Income from Abroad

• Domestic Product (GDP) includes the value of all final goods and services produced within the domestic territory of a country, regardless of whether the producers are citizens or foreign nationals.
• National Product (GNP) includes the value of all final goods and services produced by the normal residents (nationals) of a country, regardless of where they are produced (inside or outside the country).

Net Factor Income from Abroad (NFIA) includes the following components:

• Income earned by nationals from abroad (e.g., wages, profits, interest)
• Minus income paid to foreign nationals working or investing domestically