The document summarizes the economic growth determinants of different nations such as South Africa and other emerging markets. It links the variables that affect international business both positively and negatively through managerial implications.
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, Compiled by Tello Email:muzvazi47@gmail.com Mobile:+27717513144
INT4801 SUMMARISED NOTES. (TOPIC 2.2)
Gross National Product. (GNP)
Political, economic and legal systems of a country have a profound impact on its
economic development according to Montibeler & Oliveira (2018).
This means that, the attractiveness of the particular country for international business
across the globe is affected by different factors.
GNP can be defined as an estimate of total value of all the final products and services
turned out in a given period by the means of production owned by a country's
residents, (Lepenies, 2019).
In other words, GNP is the total market value of goods and services produced by all
the citizens and capital during a given accounting period (usually one year).
It is considered a reliable yardstick for measuring a country's economic performance,
since it measures the total value of the goods, services and capital the country
produces annually.
GNP is commonly calculated by taking the sum of personal consumption
expenditures, private domestic investment, government expenditure, net exports and
any income earned by residents from overseas investments, minus income earned
within the domestic economy by foreign residents.
Net exports represent the difference between what a country exports minus any
imports of goods and services in a given period of time.
Given that, countries differ in levels of economic development, a benchmark is
required to establish measurable indicators of development to avoid likely
equivocation (Ambiguity).
GNP measures the output of the country`s residents regardless of the location of the
actual underlying economic activity, (Lepenies, 2019).
This would mean that, income from overseas investments by a country`s residents
counts in GNP; eg income from MTN subsidiary in Nigeria would be added into
South African GNP annual reports.
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