The PMBOK Guide is knowledge or a collection of recommendations and best practices, while PRINCE2 is a methodology. Following table highlights some of the key differences.

Knowledge or a collection of recommendations and best practices (Explains what you should know)
Methodology (explains what you should do)
Descriptive (explains the good practices)
Prescriptive (tells you what to do)
PMBOK consists of the tools and techniques of project management and is a guide telling how things could be done whereas PRINCE2 is a methodology, with a clear process, steps and templates.
Answers WHAT, WHEN, and WHOM questions.  PRINCE2 explains exact set of processes or steps to be followed and templates. A project manager following PRINCE2 is very clear about steps to be  followed
PMP is centred  around the project manager and emphasises on what a project manager should and his roles and responsibilities
In PRINCE2 the focus is on three levels of management, Directing (Project Board), Managing (Project Manager) and Delivering (Team Manager). The roles and responsibilities corresponding to each role in all the three levels is defined very clearly

PRINCE2 is popular in countries such as UK, Australia and certain European countries such as Netherlands, Denmark and Germany. PMP is more popular in North AmericaA good project manager should have both the PRINCE2 and PMP certifications.  Even if one doesn’t have both the certifications still at least one should be familiar with both.  It is a popular scenario in UK after receiving the PRINCE2 certification, the project manager will supplement with PMP training while in North America, PMP members wants to take the PRINCE2 in order to get more on the Project Control and with an additional globally recognized certification.

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