how will the GDP of Switzerland go up if the accounting firm is located in France?
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correct answer is c
An accounting firm located in France provides accounting services to a manufacturer located in Switzerland.
This scenario would have a positive impact on the GDP of Switzerland. The accounting services provided by the firm in France would be considered an import of services by the Swiss manufacturer. As a result, the value of these imported accounting services would be included in the calculation of Switzerland’s GDP.
However, this scenario would not directly impact the GNP of France. GNP measures the market value of all final goods and services produced by factors of production supplied by residents of a country, regardless of whether the production takes place within the country or outside of it. Since the accounting firm is located in France and provides services to a Swiss manufacturer, the value of these services would be included in the GDP of Switzerland, not the GNP of France.