A software company headquartered in and operating from Ireland develops and sells a new project management application to a construction firm in the United States. How does this transaction affect the measurement of Ireland's total economic output?

Identifying Export Transactions

If a U.S.-based corporation manufactures smartphones in its factory in China and sells them to consumers in Germany, this transaction is counted as a U.S. export.

Analyzing International Transactions

From the perspective of the United States' economy, match each transaction with its correct classification.

Analyzing the Economic Impact of a Multinational Corporation's Local Production

In the context of a country's economic activity, goods and services that are produced within its borders and then sold to buyers in other countries are categorized as ____.

Dissecting a Multinational's Economic Activities

An economist is calculating the total value of a country's sales to foreign nations. Based on the following list of transactions for the country of Lumina, what is the correct total value to be included in this calculation?

• A car company in Lumina produced and sold $50 million worth of vehicles to consumers in a neighboring country.
• A technology firm headquartered in Lumina manufactured and sold $20 million worth of tablets from its factory located in a foreign country to customers in that same foreign country.
• A furniture maker in Lumina sold $30 million worth of goods to households within Lumina.
• A financial services firm based in Lumina provided $10 million worth of consulting to a corporation in another country.

Determining the Origin of an Export