Which measurement includes the value of goods and services produced by Irish firms operating in foreign countries?

• A. Gross Domestic Product (GDP)
• B. Net National Growth (NNG)
• C. Gross National Product (GNP)
• D. Foreign National Product (FNP)

Answer: (C)

National income accounting treats production by ownership as different from production by location. GDP measures value created within a country’s borders, regardless of who produces it. Gross National Product, however, counts the output produced by a country’s residents or domestic entities no matter where that production occurs. Therefore, goods and services produced by Irish firms operating abroad are included in Ireland’s GNP because the producers are Irish. If the activity were carried out by foreign-owned firms inside Ireland, GDP would capture it, but GNP would not. The other terms aren’t standard measures of this concept, so they don’t fit.