If Honda (a Japan-based firm) produces a car in Ohio and exports it to Japan, in which country's GDP will the car be counted?
A) Japan's, because Honda is a Japanese company
B) Japan's because that is where the car is purchased
C) The GDP of the United States because that is where it was built
D) Both Japan and the United States

Question

Quizplus · Accepted Answer

The car was produced in Ohio, which is in the United States. Therefore, it will be counted towards the GDP of the United States.

If Honda (A Japan-Based Firm) Produces a Car in Ohio