If a German firm produces cars in the United States,that production should count towards

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Quizplus · Accepted Answer

GDP measures the economic value of all goods and services produced within a country's borders. Since the German firm is producing cars in the United States, that production is contributing to the U.S. economy, and therefore should be counted towards U.S. GDP. It is not counted towards German GDP because the production is occurring outside of Germany's borders. GNP, on the other hand, measures the economic value of goods and services produced by a country's residents, regardless of where the production occurs. Since the German firm is not a resident of the United States, their production would not count towards U.S. GNP.

If a German Firm Produces Cars in the United States,that