If an American firm opens a production facility in India,the total value of the production will be included in the

Question

Quizplus · Accepted Answer

The total value of the production from the American firm's facility in India will be included in the gross domestic product of India, as it represents a contribution to the country's economic output. It will not be included in the gross domestic product or national income of the United States, as it is a foreign investment and production. The consumption of fixed capital, which refers to the depreciation of the physical capital used in production, is also specific to the country where the production takes place and will not be affected by the American firm's investment.

If an American Firm Opens a Production Facility in India,the