This sector of industry generally takes the output of the primary sector and manufactures finished goods or products to a point where they are suitable for use by other businesses, for export, or sale to domestic consumers.
Export products or services are provided to foreign consumers by domestic producers.
Export is the legitimate transportation of domestic or nationalized goods and services from a country intended for use or consumption rendered abroad.
Due to this, it's important for you to consider not only how your business contributes to Gross National Product, but, to coin a phrase from Bhutan's King Jigme Singye Wangchuck, "Gross National Happiness"....
The core intention of this reform of the NHI is to raise up to 5% of Gross Domestic Product (GDP) in additional taxes to achieve a total public spend equivalent to 8% of GDP.
Almost all nations sought to protect their domestic production by imposing tariffs,raising existing ones, and setting quotas on foreign imports. The effect of theserestrictive measures was to greatly reduce the volume of international trade: by 1932 thetotal value of world trade had fallen by more than half as country after country tookmeasures against the importation of foreign goods.
The rapid growth of health expenditures is one of the most important economic trends in the United States in the post–World War II era. It has implications for the financial viability of federal and state governments and has resulted in stagnation of wages in most industries. In 1950, health expenditures accounted for only 4.6% of the gross domestic product (GDP). In 2009, they accounted for more than 17%, a larger share than all manufacturing, or wholesale and retail trade, or finance and insurance, or the combination of agriculture, mining, and construction. According to public finance experts such as Alan Blinder and Alice Rivlin, control of health care expenditures is the greatest fiscal policy challenge facing the United States.
In the above example, all of the income from the car factory would be counted as US GDP rather than German GDP.
To convert from GNP to GDP you must subtract factor income receipts from foreigners that correspond to goods and services produced abroad using factor inputs supplied by domestic sources.
The wages of the American workers would be part of US GNP, while the wages of any German workers on the site would be part of German GNP.
Gross Domestic Product
GDP Top 10 (2004) (currency exchange rate)
Country GDP ($ mill)
1 United States 10,435,284
2 China 5,409,852
3 Japan 4,326,444
4 Germany 2,400,655
5 United Kingdom 1,794,858
6 France 1,747,973
7 Italy 1,465,895
8 Canada 958,390
9 Spain 836,100
10 Mexico 626,888
Gross Domestic Product (GDP) is the total value of final goods and services produced within a country's borders in a year.
GDP counts income according to where it is earned rather than who owns the factors of production.
Yet the GDP was never intended for this role. It is merely agross tally of products and services bought and sold, with nodistinctions between transactions that add to well-being, andthose that diminish it. Instead of separating costs frombenefits, and productive activities from destructive ones, theGDP assumes that every monetary transaction adds to well-being,by definition. It is as if a business tried to assess itsfinancial condition by simply adding up all "businessactivity," thereby lumping together income and expenses,assets and liabilities.
To convert from GDP to GNP you must add factor input payments to foreigners that correspond to goods and services produced in the domestic country using the factor inputs supplied by foreigners.