Which of the following would increase GNP in the United States?
A)an increase in the production of U.S.-owned General Motors cars made in Mexico
B)an increase in the production of Japanese-owned Toyota cars in Mexico
C)an increase in the production of Japanese-owned Toyota cars in the U.S.
D)an increase in the production of Mexican-owned Grupo Minsa corn in the U.S.

Question

Quizplus · Accepted Answer

GNP (Gross National Product) measures the value of goods and services produced by a country's residents, regardless of where they are located. An increase in the production of U.S.-owned General Motors cars made in Mexico would increase the U.S. GNP because it involves production by U.S. residents (General Motors) abroad.

Which of the Following Would Increase GNP in the United