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An electronics company in Tijuana, Mexico assembles Sony TVs using components imported from the United States and Japan. A typical TV with a per unit total cost of $1,600 includes $700 worth of components manufactured and imported from California and $400 worth of components manufactured and imported from Japan. The facility in Tijuana assembles the components and accounts for the remaining  $500 worth of final value. Suppose that all of the TVs manufactured in this plant are exported to the United States and purchased by U.S. households. How would the production and sale of a typical TV at this plant show up in U.S. GDP and its components?

Reference no: EM131095227

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