If an American firm produces goods that are sold to a German household, then

Question

Quizplus · Accepted Answer

U.S. GDP increases because the production of goods that are sold abroad (in this case, to a German household) counts as an export, which is a component of GDP in the country where the goods were produced (the United States). Exports add to the GDP of the exporting country, reflecting the economic output generated by producing goods and services for foreign consumption.

If an American Firm Produces Goods That Are Sold to a German