Question
Assume that MM Company made the intermediate input purchases inside Mexico from another Mexico-based company named INT Inc. In turn, INT, Inc. bought $30 million
Assume that MM Company made the intermediate input purchases inside Mexico from another Mexico-based company named INT Inc. In turn, INT, Inc. bought $30 million worth of inputs for its $50 million sale to MM Company from outside the country and produced all the value added itself in Mexico. Also, assume that INT, Inc. had excess capacity to meet the demand of MM Company without turning away any other customer. How much did the MM Company project contribute to the GDP of Mexican economy in 2019 under these alternative assumptions? Explain your answer.
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