In 2018 John Buys a Factory Built in 2012 and Constructs

question 103

Essay

In 2018 John buys a factory built in 2012 and constructs a new storage house within the premises. The transaction of buying the factory is not counted in the GDP, but the construction of the storage house in the same factory is counted in the GDP. Why?

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Definitions:

Prepared Strategy

A prepared strategy is a formulated plan or set of actions designed in advance to achieve a specific goal, especially in competitive or challenging situations.

New Opportunity

A new opportunity refers to a fresh chance or prospect that has arisen, offering potential for growth, advancement, or success in personal or professional realms.

Intangibles

Non-physical factors that cannot be easily quantified, such as brand value, reputation, or employee morale.

Suboptimal Negotiation

A negotiation in which the outcomes or processes are not as good as they could be, often due to inadequate preparation or understanding.