Question 1:
a. (IN YOUR WORDS), define Gross Domestic Product (GDP).
b. A Kuwaiti businessman has a factory in England, does Kuwaiti GDP includes the value of the products that this factory produces? Why?
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Answer
a. Gross domestic product is the value of the goods and services
which have been produced within the domestic territory of a country
during a Gross year . Domestic territory means within the political
borders of the country . IT includes both the goods . GDP is
calculated as sum of all Consumption , Government expenditure ,
Investment and Net exports ( exports- Imports).
b. No , the Kuwaiti GDP won't include the value of the products
that the factory produces. The factory is in England , .i.e.
outside the domestic territory of Kuwait . Only the value of the
goods produced within the domestic territory are included. The
value of goods will be included in the GDP of England.
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