Consider the following scenario:

•        American Ore, Inc. extracts $4,200 worth of iron ore every year and sells it to American Steel, Inc.

•        American Steel takes the iron ore makes steel, which is sold to Korean Cars for $9000.

•        Korean Cars, owned by Korean citizens, hires American employees and rents land in Korea to U.S. citizens (who own the land) for their auto factory. The cars produced at that factory are sold in the U.S. for $21,500.

What is the contribution of the above to U.S. GDP?

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When calculating the contribution of the scenario to US GDP we need to focus on the value added with... View the full answer