In this r epor t i would be explaining w hat GDP and GNH is then i would be discussing the dif fer ent

between the two. T hen I would be discussing the main pr oblem w hich occur w hen measuring the two then i would end this r epor t with a conclusion.

GDP (gr oss domestic pr oduct) is the final value of goods and ser vices pr oduced within an economy r e gar dless of w ho owns the pr oduction. GNP (gr oss national pr oduct) is the final value of goods and ser vices pr oduced by capital owned by a specific nationality r e gar dless of w her e it is placed. For example, Voltswa gen have a car plant in the UK, but the value of the car s it pr oduces will be added to Ger manies GNP, not UK's GNP. It will however be added to UK's GDP and not Ger many's GDP http://wiki.answer s.com/Q/W hat_is_the_Dif fer ence_between_G DP_and_national_income#ixzz1M3NgDuPs

T he gr oss domestic pr oduct (GDP) is one the primar y indicator s used to gauge the health of a countr y's economy. It r epr esents the total dollar value of all goods and ser vices pr oduced over a specific time period - you can think of it as the size of the economy. Usuall y, GDP is expr essed as a comparison to the pr evious quar ter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has gr own by 3% over the last year. Measuring GDP is complicated (w hich is w hy we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up w hat ever yone ear ned in a year (income appr oach), or by adding up w hat ever yone spent (expenditur e method). Logicall y, both

measur es should ar rive at r oughl y the same total. Gr oss Domestic Pr oduct is abbr eviated as GDP. It is sum of all of the economic goods w hich ar e giving benefits to the countr y in economic or monetar y ter ms. It is impor tant for a countr y over all because it tells about the pr esent economic status of a countr y in wor ld. A countr y with high GDP would be having impr oved and standar d economy w hile a countr y with low GDP would be having low standar d and poor l y developed economy. For example America has highest GDP so it is called super power. China is going to beat America's GDP in a couple of year s then it would be the next super power. It is total consumption and investment along with gover nment spending and impor ts but we need to subtr act impor ts fr om expor ts befor e adding because it will balance the equation of GDP in this way. GDP can consider both of the private and public sector s as it has r ole of both of them. Both sector s ar e impor tant in wor king for the pr ogr ess of the countr y so we ar e not allowed to avoid the significance of one over the other. GDP can be measur e by the help of two standar ds; national and inter national ones.

To calculate r eal GDP, the BEA makes thr ee impor tant distinctions: Impor ts and income fr om U.S. companies and people fr om outside the countr y ar e not included, so the impact of exchange r ates and tr ade policies don't muddy up the number. T he ef fects of inflation ar e taken out. Onl y the final pr oduct is counted, so that if someone in the U.S. makes shoelaces, and it is used to make shoes in the U.S. (ther e ar e a few companies left!) onl y the value of the shoe gets counted.

GDP is impor tant for thr ee r easons: Most impor tantl y, it is used to deter mine if the U.S. economy is gr owing mor e quickl y or mor e slowl y than the quar ter befor e, or the same quar ter the year befor e.

It is also used to compar e the size of economies thr oughout the wor ld. It is to compar e the r elative gr owth r ate of economies thr oughout the wor ld. Investor s look at GDP gr owth to see if the economy is changing r apidl y so they can adjust their asset allocation. In addition, investor s compar e countr y GDP gr owth r ates to decide w her e the best oppor tunities ar e. Most investor s like to pur chase shar es of companies that ar e in r apidl y gr owing companies

Gr oss National Happiness (GNH) is an indicator developed in Bhutan in the Himalayas, based on the concept elabor ated in 1972. Since then, the kingdom of Bhutan, with the suppor t of UNDP (UN Development Pr ogr am), be gan to put this concept into pr actice, and has attr acted the attention of the r est of the wor ld with its new for mula to measur e the pr ogr ess of a community or nation. GNH is based on the pr emise that the calculation of wealth should consider other aspects besides economic development the pr eser vation of the envir onment and the quality of life of the people. T he goal of a society should be the inte gr ation of material development with psychological, cultur al, and spiritual aspects all in har mony with the Ear th. T he Four Pillar s of GNH the pr omotion of equitable and sustainable socioeconomic development the pr eser vation and pr omotion of cultur al values the conser vation of the natur al envir onment, and the establishment of good gover nance. T he concept of gr oss national happiness (GNH) was developed in an attempt to define an indicator that measur es quality of life T he ter m quality of life is used to evaluate the gener al wellbeing of individuals and societies. T he ter m is used in a wide r ange of contexts, including the fields of inter national development, healthcar e, and politics. Quality of life should not be confused with the concept of standar d or social pr ogr ess in mor e holistic and psychological ter ms than gr oss

domestic pr oduct. T he gr oss domestic pr oduct or gr oss domestic income is a measur e of a countr y's over all economic output. It is the mar ket value of all final goods and ser vices made within the bor der s of a countr y in a year...

T he advantage of gdp is that the Economists use GDP to measur e the r elative wealth and pr osperity of dif fer ent nations, as well as to measur e the over all gr owth or decline of a nation's economy T he disadvanta ge for GDP can be gr eatl y af fected by expor ts. For example oil pr oducing countries of might lar ge GDP per labor er(w hich is pr oductivity), but they do not pr oduce that much and their wor ker s ar e not par ticular l y. GDP is also r eflects onl y aver age pr oductivity some wor ker s might wor k mor e then other s and a few extr emel y pr oductive wor ker s might pull GDP up Advantage for GNH Disadvantage for GNH Discussing the main problem of measuring both GDP and National Happiness.

http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm