00:01
So here we are trying to get a distinction between gross domestic product, which is what the d stands for, and gross national product, which is what the n stands for.
00:11
And so let me distinguish between each of these.
00:14
Domestic means within your borders, right? and this is in contrast to national, which means owned by your citizens, right? so that's the and so these two things differ when your citizens own businesses or engage in economic activity outside your borders, right? the difference is when citizens operate internationally.
00:40
And when i say citizens, right, we mean firms, all sort of economic agents of a particular country.
00:50
That's what creates differences between gross domestic and gross national product.
00:55
So for developing countries, how should we think about these? well, if developing, you are relatively poor, and you are probably more likely to play host to foreign countries, to foreign companies.
01:18
So if you are a developing country, it is likely that you are relatively poor.
01:24
Your companies are not world beaters on the global stage...