Taco Bell opens a branch in Iceland. The sales of the restaurant enter the U.S. GNP and the Icelandic GDP.

Question

Quizplus · Accepted Answer

The sales of Taco Bell in Iceland would be included in the U.S. GNP (Gross National Product) because GNP measures the economic output generated by the nationals of a country, regardless of where the production takes place. Since Taco Bell is a U.S. company, its overseas operations contribute to the U.S. GNP. These sales would also be included in the Icelandic GDP (Gross Domestic Product) because GDP measures the total value of all goods and services produced within a country's borders, regardless of the nationality of the company producing those goods and services.

Taco Bell Opens a Branch in Iceland