GDP GTP (Gross Domestic Product to Gross National Product) Reversing Factors refer to the different factors that can cause a change in the measurement and calculation of a country's economic performance from GDP to GNP or vice versa. GDP and GNP are both important indicators used to measure the size and growth of an economy, but they differ in terms of their scope and coverage.
GDP is the monetary value of all final goods and services produced within a country's borders in a given period, regardless of whether the production is done by foreign or domestic entities. On the other hand, GNP includes the value of all the final goods and services produced by a country's residents, whether they are located within the country or abroad. It also takes into account the income earned by a country's citizens from their abroad investments and employment.
The factors that can lead to a reversal from GDP to GNP measurement or vice versa include net income from abroad, net transfers, net unilateral transfers, and net direct taxes. Net income from abroad refers to the income earned by a country's residents from their investments and employment in foreign countries, which can affect the GNP measurement. Net transfers and net unilateral transfers involve the flow of funds, through remittances or aid, between residents and non-residents, affecting both GDP and GNP calculations. Lastly, net direct taxes consider the difference between taxes paid by residents to foreign governments and taxes paid by non-residents to the domestic government.
In conclusion, GDP GTP Reversing Factors pertain to various elements that influence the transition between the measurement of economic performance from GDP to GNP or vice versa, including net income from abroad, net transfers, net unilateral transfers, and net direct taxes.
