Since It Is Counted as Investment, Why Doesn't the Purchase

question 107

Essay

Since it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S. corporation increase U.S. GDP?

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Definitions:

Korean War

A conflict between North Korea, with the support of China and the Soviet Union, and South Korea, supported by the United Nations, primarily the United States, from 1950 to 1953, which ended in an armistice.

Long Telegram

A telegram by American diplomat George Kennan in 1946 outlining his views of the Soviet Union that eventually inspired the policy of containment.

Policy of Containment

A foreign policy strategy aimed at preventing the spread of communism, adopted by the United States during the Cold War.

Communist Victory

Refers to a successful achievement or takeover by communist forces or parties in a political or military struggle.