Question

If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexico's GDP ________ and U.S. GDP ________.
A.increases; increases

B.does not change; increases

C.increases; decreases

D.increases; does not change

Answer 1

Answer:

The correct answer is D.increases; does not change .

Explanation:

Taking into account that the location of the new plant will be in Mexico, then the total production will be considered in the calculation of the GDP of that country because the process is carried out in a plant that is within its territory. For the United States there is no movement because the operations are carried out 100% outside its territory.