Commodity firm Metals Inc. is based in China and mines $5M in metal that they sell/export from
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Question:
Commodity firm Metals Inc. is based in China and mines $5M in metal that they sell/export from their Chinese plant to Intel’s U.S. factory.
• Intel takes this metal and uses it to produce processors, which they sell for $25M to Apple’s factory in China.
• Apple uses the processors to make computers, which they sell for $40M to U.S. consumers.
• Even though it’s not realistic, assume there are no other components used at any point along the way.
a. What is the contribution of the above to U.S. GDP?
b. What is the contribution to the GDP of China?
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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