Question

If a German firm produces cars in the United States, that production should count towards a....

If a German firm produces cars in the United States, that production should count towards

a. German GDP.

b. both U.S. GNP and German GDP.

c. U.S. GNP.

d. U.S. GDP.

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Answer #1

The answer is D- U.S. GDP

GDP also relates to the country's revenue. GDP also relates only to products manufactured in a given nation. This implies that if a company is situated in one nation but produces products in another, those products will be counted as portion of the GDP of the foreign country, not the home nation of the company. For example, BMW is a German company, but cars produced in the U.S. are counted as part of the U.S. GDP.

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