Question

Shoes made by an American-owned company in Boston count in _____.

Answer 1

only the Gross National Product

Answer 2

Answer:

The correct answer would actually be, that if shoes are made by an American-owned company in Boston, the profits count into the nation´s GDP, or Gross Domestic Product.

Explanation:

The answer comes from understanding the difference between the Gross National Product, and Gross Domestic Product. Although both share the common ground that both measure the goods and services produced and sold by an economy, and which generate an income, the big difference is that GDP only takes into consideration national output, national income and national expenditure, while the GNP takes into consideration all the products and services, and income, produced by nationals outside, and inside, the country. In this case, the production of the shoes is national, and by a national, therefore it affects GDP.