Question

A resident of San Diego, California, owns and operates a garage across the U.S.-Mexican border in Tijuana, Mexico. The value of the garage services produced at the shop would be counted in _____.

A) U.S. GDP only
B) Mexican GDP only
C) Both U.S. and Mexican GDP
D) Neither U.S. nor Mexican GDP

Answer 1

The value of the garage services produced at the shop would be counted in both U.S. and Mexican GDP.

Step-by-step explanation:

The value of the garage services produced at the shop would be counted in Both U.S. and Mexican GDP. This is because even though the garage is located in Tijuana, Mexico, it is owned and operated by a resident of San Diego, California, which means the production is considered part of the U.S. GDP. At the same time, the garage is physically located in Mexico and provides services to Mexican customers, so it also contributes to the Mexican GDP.