(2) \( \$ 4,170 \). (3) \( \$ 1,910 \). (4) \( \$ 1,860 \). Question 13 If Honda (a Japan-based firm) produces a car in Ohio and exports it to Japan, in which country's GDP will the car be counted? (1) Japan's, because Honda is a Japanese company (2) The GDP of the United States because that is where it was built (3) Japan's because that is where the car is purchased (4) Both Japan and the United States (4) (4) (3) (3) (3)
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The Deep Dive
When it comes to GDP calculations, the key factor is where the production takes place, not the nationality of the company. Since the car was manufactured in Ohio, it falls under the GDP of the United States. So, while it might have a Japanese stamp, its American roots keep it firmly planted in the U.S. GDP garden! Also, this is an interesting glimpse into globalization! Companies often have production facilities around the world, leading to products made in one country but sold in another. This cross-border trade showcases the interconnectedness of economies and how local production can impact national metrics like GDP. Isn't it fascinating how cars can take such journeys while influencing economic statistics globally?