You are here


8 May, 2015 - 11:04

GNP can be calculated by adding up all the value added from the intermediate goods (the result is exactly the same). Countries with tax systems based on value added taxes prefer this method.

The work performed to assemble a car from its many components (such as windshield, tires, motor, and so on), is the value added in a car assembly plant. Such a value added can also be calculated by taking the difference between the selling price and the costs of all material and goods used in the product sold.