The value of the goods and services produced by the American fast food restaurant in Paris, France would be included in French GDP but would not be included in U.S. GDP.
What is GDP?
Gross Domestic Product (GDP) is a measure of the market value of all final goods and services produced within a country in a given period of time, typically a year. It is used to measure the economic performance of a country and is a key indicator of the overall well-being of a nation.
The value of the goods and services produced by the American fast food restaurant in Paris, France would be included in French GDP because the restaurant is located within the territorial boundaries of France and is producing goods and services that are consumed within France.
However, the value of the goods and services produced by the restaurant would not be included in U.S. GDP because the restaurant is not located within the territorial boundaries of the United States and the goods and services it produces are not consumed within the United States.
Hence, only goods and services produced within a country's territorial boundaries and consumed within that country are included in that country's GDP.
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