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 ________.

Answer 1

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 increases and U.S. GDP remains the same .

Step-by-step explanation:

GDP (Gross Domestic product ) is the monetary measurement of the aggregate production of goods and services in a country during a given period of time. It takes into consideration all goods and services produced or rendered by both the citizens and foreigners.

Therefore Frito lay producing snacks in Mexico will increase the GDP of Mexico and will not affect the GDP of the US