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    • Thread Starter

    I'm trying to get a bit ahead with what I'm getting taught in class, but I'm confused about how exactly investing overseas benefits the UK economy. Macro is my major weakness and all I can think of is that if that country has a comparative advantage, they can reduce their costs and achieve better efficiency but I thought GDP only includes output generated within the UK (or would you say that this would otherwise GNP instead). I'm sorry if this sounds really stupid/confusing, but I don't know whether output generated by this firm based overseas would contribute towards investment or exports.:confused::confused:

    Thank you
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