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Contributions to the GDP
The purpose of this assessment is to identify which activities contribute to the U.S. GDP and which activities do not.
Discuss which of the following activities will contribute in the U.S. GDP. Support your responses with appropriate rationale.
· Goods sourced and sold by Wal-Mart subsidiary in Mexico· Goods sourced and manufactured in China and sold by Wal-Mart in the U.S.· Services provided by Facebook's data center in India· Furniture produced and sold by IKEA's subsidiary in Ohio· AutoCAD training provided by a U.S. trainer to the architects of an architecture firm based out of Italy· Joe's earning after selling his car to Jack· New iPhone sold in grey market - A grey market includes distribution channels, which are legal but are unofficial, unauthorized, or unintended by the original manufacturer for the trade of a product.· Opium sold in subways and parking lots· Earnings collected by selling the tickets of Madonna's dance show in Tokyo· Earnings by selling the tickets of Indian Film Festival Awards in Texas
· Did you identify the correct activities that will and will not contribute to the U.S. GDP?· Did you cover all the activities in your discussion?· Did you discuss which activities were easy to identify and which were difficult?· Did you share what confused you for the activities you found difficult to identify?· Did you use macroeconomic terminologies in your discussion wherever possible?
The book value of Factory Machine M is £580,000 at the end of year 1, and is £160,000 at the end of year 4. Calculate, for Factory Machine M, the:
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