Which of the following is likely to happen if a German company opens a production unit in New York?
A) Germany's GDP will increase.
B) Germany's GNP will increase.
C) U.S. GDP will decrease.
D) U.S. GNP will increase.

Question

Quizplus · Accepted Answer

Germany's GNP (Gross National Product) will increase because GNP measures the total economic output produced by the nationals of a country, regardless of where they are located. So, when a German company operates in New York, the income generated contributes to Germany's GNP.

Which of the Following Is Likely to Happen If a German