If a German firm produces cars in the United States of America (USA),that production should count toward

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) measures the economic output of a country within its own borders. Since the production of cars is taking place within the borders of the USA, it contributes to the USA's GDP. It does not count towards Germany's GDP or the USA's GNI (Gross National Income), as GNI considers both domestic and foreign production by a country's nationals or firms, and these cars are being produced by a German firm.

If a German Firm Produces Cars in the United States