Suppose that an auto company owned entirely by German citizens opens a new factory in South Carolina.
a)What sort of foreign investment would this represent?
b)What would be the effect of this investment on U.S. GDP? Would the effect on U.S. GNP be larger or smaller?
Macroeconomics --Production and Growth題目數問(2)
2006-10-23 12:27 am
回答 (1)
2006-10-24 5:08 am
✔ 最佳答案
a. foreign direct investmentb. increase in the case of GDP. GDP is defined as total production within the boundaries of a country; no change in the case of GNP, as this investment is not done by US citizens
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