GDP and GNP

Though I often heard them in TV, newspaper and daily talk, I do not know what they actually mean until I did a little search in answers.com.

GDP: Gross Domestic Product, the total market value of all the goods and services produced within the borders of a nation during a specified period.

GDP = consumption + investment + exports − imports

It is one of the measures of national income and output. It may be used as one indicator of the standard of living in a country, but there may be limitations with this view.

GNP: Gross National Product, the total value of final goods and services produced in a year by a country's nationals (including profits from capital held abroad).

GNP = GDP + income earned by domestic residents through foreign investments - the income earned by foreign investors in the domestic market.

Since World War II, GNP has been generally regarded as the most important indicator of the status of an economy.

It is important to differentiate Gross Domestic Product from Gross National Product (GNP). GDP includes only goods and services produced within the geographic boundaries of the U.S., regardless of the producer's nationality. GNP doesn't include goods and services produced by foreign producers, but does include goods and services produced by U.S. firms operating in foreign countries.