Hmmm no chief.. GDP definitely measures DOMESTIC production. I do however agree that in this case GNP paints a better picture than GDP because unlike the US, Russia or even Italy's GDPs ARE not close to their GNP.
Nope. If you don't understand how skewed GDP is, you won't understand half of the economic problems of the world
GNP is not much better in this regard . Real measure of financial stability would be GNP - total spending .
From investopedia :
Gross Domestic Product - GDP
Filed Under: GDP, Government & Politics, Government Spending
Definition of 'Gross Domestic Product - GDP'
The monetary value of all the finished goods and
services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of
private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
GDP = C + G + I + NX
where:
"C" is equal to all
private consumption, or consumer spending, in a nation's economy
"G" is the sum of
government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
