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Smith, a U.S. citizen, has been working in California as an executive of a U.S. telecommunication company, and her annual salary in 2009 was US$300,000. Her salary was expected to remain unchanged if she continued to work in the company. In the year 2010, however, she was recruited by a telecommunication company in Mexico, so she started working in Mexico in January 2010, making an annual salary of US$200,000. The reason why she accepted a job in Mexico with a lower salary than the current job is unknown. Assuming that the amount of her salary equals the amount of her contribution to the production in the company she works for, explain how much the annual U.S. GDP and GNP in 2010 changed due to her job relocation? Clearly show your reasoning for your answer.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9220355

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