When IBM, an American firm, produces computer chips in another country, this production is not included in U.S. GDP because the production did not take place in the United States.

Question

Quizplus · Accepted Answer

GDP measures the value of goods and services produced within a country's borders; since IBM's production is outside the U.S., it doesn't count towards U.S. GDP.

When IBM, an American Firm, Produces Computer Chips in Another