Question
1 .Consider a Mercedes plant in US owned by German shareholders. In 2020, this plant: Earns $160 million in revenue. Buys $40 million of steel,
1.Consider a Mercedes plant in US owned by German shareholders. In 2020, this plant:
Earns $160 million in revenue.
Buys $40 million of steel, aluminum and glass that it uses to construct cars.
Pays $25 million to share holders in Germany.
Pays $15 million of taxes to the US Federal Government.
Pays $60 million to US workers.
Buys $20 million of robots from a Korean robot producer. This firm is located in Korea. It has no US shareholders or workers.
What is this plant's (value added) contribution to US GDP, US GNP, Germany's GDP, and Germany's GNP?
(a) Contribution to US GDP:----------------
(b) Contribution to US GNP:...................
(c) Contribution to Germany GDP:..............................
(d) Contribution to Germany GNP:..............................
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