If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexicoʹs GDP_________ and U.S. GDP__________ .

Question

If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexicoʹs GDP_________  and U.S. GDP__________ .

Quizplus · Accepted Answer

Mexico's GDP increases because the production occurs within its borders, contributing to its economic output. The U.S. GDP does not change because the production is not taking place in the U.S., even though the company is American.

If Frito Lay, an American Snack Company, Opens a New