Suppose Japanese-based Sony Corporation builds and operates a new digital camera factory in the United States.Future production from such an investment would

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Quizplus · Accepted Answer

GDP measures the total output produced within a country's borders, while GNP measures the total output produced by a country's citizens, regardless of their location. In this scenario, the production from the new digital camera factory would be included in the calculation of U.S. GDP, but not in U.S. GNP, as it is owned by a foreign company. Therefore, the investment would increase U.S. GDP more than it would increase U.S. GNP.

Suppose Japanese-Based Sony Corporation Builds and Operates a New Digital