In year 1 a U.S.-owned corporation sets up golf ball production in Mexico. In year 2...

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In year 1 a U.S.-owned corporation sets up golf ball production in Mexico. In year 2 they produce and pay $300,000 in labor costs to Mexican workers. The golf balls are shipped back in year 2 to the U.S. and sold for an amount of $1,200,000. What are the effects on U.S. and Mexican GDP and GNP in year 2? In year 1 a U.S.-owned corporation sets up golf ball production in Mexico. In year 2 they produce and pay $300,000 in labor costs to Mexican workers. The golf balls are shipped back in year 2 to the U.S. and sold for an amount of $1,200,000. What are the effects on U.S. and Mexican GDP and GNP in year 2?

Answer rating: 100% (QA)

Effects on US and Mexican GDP and GNP in Year 2 US GDP Production in Mexico does not directly affect ... View the full answer