9.Consider the following firms, and assume that Hong Kong is our domestic economy.Foreign Steel Company,HK-owner, (Firm 1)Domestic Oil Company,Indian-owner (Firm 2)RevenuesForeign Car Company,Italian-owner (Firm 3)Revenues$175$200Revenues$300from salesfrom salesfrom salesExpensesExpensesWages$50ExpensesWages(to domestic$100Wages$70(to(toforeignworkers)workers)workers)Steel$100purchases(from firm 1)Oil$100purchases(from firm 2)Profit$125Profit$100Profit$30Compute the value added by each firm. Then, calculate the GDP and GNP of Hong Kong. Noneed to show derivations.VALUE ADDEDFirm 1Firm 2Firm 3foreign GDPGNP

Answer GDP = It is the sum of all the products and services produced in a country in a year. GNP =…

9. Consider the following firms, and assume that Hong Kong is our domestic economy. Foreign Car Company, Foreign Steel Company, HK-owner, (Firm 1) Domestic Oil Company, Indian-owner (Firm 2) Revenues Italian-owner (Firm 3) Revenues $175 $200 Revenues $300 from sales from sales from sales Expenses Wages $50 Expenses Wages (to domestic $100 Expenses Wages (to foreign $70 (to workers) workers) workers) Steel $100 purchases (from firm 1) Oil $100 purchases (from firm 2) Profit $125 Profit $100 Profit $30 Compute the value added by each firm. Then, calculate the GDP and GNP of Hong Kong. No foreign

9. Consider the following firms, and assume that Hong Kong is our domestic economy. Foreign Car Company, Foreign Steel Company, HK-owner, (Firm 1) Domestic Oil Company, Indian-owner (Firm 2) Revenues Italian-owner (Firm 3) Revenues $175 $200 Revenues $300 from sales from sales from sales Expenses Wages $50 Expenses Wages (to domestic $100 Expenses Wages (to foreign $70 (to workers) workers) workers) Steel $100 purchases (from firm 1) Oil $100 purchases (from firm 2) Profit $125 Profit $100 Profit $30 Compute the value added by each firm. Then, calculate the GDP and GNP of Hong Kong. No foreign

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 5SCQ: At one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export...

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Billion of Dollars Composition Consumption 17. 4900 Investment 1300 Government expenditures 1200 1050 Exports Imports Net foreign factor income 950 20 Based on table 1, the value of GDP is C 7,400 C 6,200 O 7,500 O 8,450
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5. You are given the following information about an economy: $millions GDP at Market Prices 1,,669.4 Imports 290.5 Gross Domestic Capital Formation 48.7 Income accruing to the Public Sector 39.0 Retained Business Earnings 75.9 Exports 273.4 Subsidies 16.8 Factor Payments from Abroad 10.0…
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