Domestic product is also known as domestic income, calculated without including foreign income.
National product is also known as national income, calculated by including foreign income.
Foreign residents are contributing to national products.
For example, suppose an Indian resident lives in another country and sends some income to their family in India. In that case, that income is not calculated in the domestic product but must be included in the national product.
For example, a U.S.-based Canadian NFL player who sends their income home to Canada, or a German investor who transfers their dividend income to Germany, will both be excluded from the U.S. GNP, but they will be included in the country’s GDP.
Final Answer:
Domestic product means a domestic income measure the aggregate production of final goods and services within the domestic economy during a year.
National product means national income measures the aggregate production of final goods and services within the domestic economy during a year and includes net national income from abroad.
For example, suppose an Indian resident lives in another country and sends some income to their family in India.
In that case, that income is not calculated in the domestic product but must to include in the national product.
