What is the difference between GNP and GDP?

A question from Yahoo! Answers:

What is the distinction between GNP and GDP?

The difference is very minor.

GDP measures goods and services produced within the geographic boundaries of a country. GNP measures goods and services produced using capital controlled by the residents of a country. So the only difference between the two occurs because of cross-border business ownership. Say, a company is based in Country A and owns a factory in Country B. The product of that factory will be counted towards GDP in Country B, but not in Country A, and towards GNP in Country A, but not in Country B.

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