Sunday 7 July 2013

Nuffnang's Contribution to Malaysia's Gross National Product

Ever heard of Nuffnang? Nuffnang is currently the world's leading blog advertising community.

It is catered to individuals who are passionate in blogging. Nuffnang has an active community reaching out to 1, 000, 000 bloggers in 8 countries and regions, namely Malaysia, Singapore, Philippines, Australia, China, Hong Kong, Thailand, and United Kingdom. Nuffnang which has been established since year 2007, by year 2010 was already generating $10 million in annual revenue.

At Nuffnang, bloggers are given the opportunity to connect with advertisers who’re looking to get the attention from the public regarding their products. Bloggers then have the chance to generate income through reviewing a product or services and of course by having ads being placed on their blogs by various brands. Besides that, bloggers would also gain access to exclusive events such as movie premieres, product launches or parties. 

Since Nuffnang is based in Malaysia, its profits and loss will be accounted for the calculation of the Gross National Product (GNP) of Malaysia. Malaysian bloggers who are currently staying abroad are pitching in to the success of the company which is making themselves known not just locally but globally as well. The higher the GNP of Malaysia, it will push our country to greater heights thus enhancing the influence of our country internationally. This would undoubtedly create an impact towards the economic situation of Malaysia.

  •  Gross National Product (GNP) measures the total value of all FINAL goods and services produced within a nation over the given period of a year, inclusive of the income earned by the nation’s citizens regardless of their location. GNP is an indicator to the economic performance of the citizens of the country. The higher the GNP, it indicates a higher quality of living among the citizens.    

  •  Gross Domestic Product (GDP) on the other hand measures the total value of all FINAL goods and services produced within the territorial boundary of a country during a given period of time. GDP on the other hand is an indicator to the performance of the country’s local economy. There are two types of nonproduction transactions which would not be included in the calculation of GDP, namely purely financial transactions and secondhand sales.

    The 3 types of calculation for Gross Domestic Product (GDP) 

    1.       Expenditure Method

    ·         Summation of total expenditure on final goods and services which consists of the components such as consumption, investment, government purchases and net exports
    ·         Y = C + I + G + (X - M)

          2.       Output Method

    ·         Summation of value of newly produced goods and services

          3.       Income Method

    ·         Summation of all the incomes earned in the production of final goods and services which consists of the components such as compensation of employees, proprietor’s income, rental income, net interest and corporate profits.
    ·         Y = w + i + r + net i + p

Written by        : Chuah Pei Jin
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