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Sagot :
When a firm purchases an honest or service from abroad, this purchase increases the investment component of GDP. If the acquisition was made by the govt., then the govt. the purchasing component of GDP would increase.
Recall that net exports equal exports minus imports. Because foreign-made goods and services purchased by company purchases domestic parties (consumers, firms, and therefore the government) are imports, their value is subtracted from exports and shows up within the GDP calculation as an accounting entry (with a minus sign).
In this case, because an American company has purchased and imported wood, the investment component company purchases increases by the worth of the wood. However, since the wood was imported from Brazil, net exports decreased by the identical amount (the value of the wood). Although the investment and net exports components of GDP have changed, there's no overall change in GDP.
The largest component of value is compensation of employees. Sales of used goods and sales from company purchases inventories of products that were produced in previous years are excluded. Only goods that are produced and sold legally, additionally, are included within our GDP.
learn more about company purchases: https://brainly.com/question/20936775
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