German Company.. What is it contributing to??

Question

3. This German company Neoplan operating in the US (making busses) is contributing to:
a. the Untied States’ GNP and Germany’s GDP
b. Germany’s Federal Budget
c. The US’ GDP and Germany’s GNP
d. Deflation in the US and inflation in Germany.

I said it was A.. but supposedly thats wrong -.-; So now I'm stuck and I've reviewed the video like 5 times, its not saying anything about deflation or federal budget.. Can you explain this to me please?

Answer 1

None of the above. Neoplan USA was a bus manufacturing company based in Denver, CO, entirely separate from the original (German) Neoplan, from which it licensed designs. Neoplan USA was founded in 1981 and filed for Chapter 11 bankruptcy in August 2006:

http://en.wikipedia.org/wiki/Neoplan_USA

Assuming, however, that Neoplan USA were owned by Neoplan, the correct answer would be (c). GDP measures goods and services produced within a country; GNP, goods and services produced using capital owned by residents of a country. So a factory located in the U.S. and owned by a German company would be contributing to the U.S. GDP and German GNP.