Julie asked in Social ScienceEconomics · 6 months ago

Economics problem..?

Since it is counted as investment, would the purchase of earthmoving equipment from Germany by a Malaysian company increase Malaysian GDP? Why or why not?

Please give a detail answer. .. THanks

1 Answer

  • Oiy
    Lv 5
    6 months ago
    Favorite Answer

    The equipment is not a final product. It will not be included in GDP in Malaysia, but Germany. In Germany, it will be included as export. In Malaysia, it will be calculated the value-added.

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