The Gross Domestic Product In Mexico

The Gross Domestic Product in Mexico

Introduction

In Mexico and other countries, there is constant development and for this obviously, the production of goods, services and investments is needed, from this obvious fact, we can see how human needs are the main causes of this constant development,While the goods that are tangible objects that we acquire through monetary value, objects such as our house, car, television, smart cell phone, our clothes and among many more things.

Developing

Through our judgment we understand a total need to acquire them, thus having the peace of mind in our thirst for consumption. Well, when acquiring these objects outside everything, it would not be bad, but let’s see what in our opinion, in the first instance it is something that cannot be missing for these objects, for example, after buying a car the right thing would be to hire insuranceof cars, this to avoid the total loss of our precious piece of metal with 4 wheels, this implies then hiring a service.

Since cars insurance is considered a service, this is made clear in its own definition, being understood as intangible activities whose purpose is to meet needs that cannot be met with tangible objects, then said the above we identify that the need forAcquiring a car can lead us to the need to acquire a service that probably had no plan to hire. We have seen how the acquisition of goods can be forced indirectly or subconscious.

To satisfy needs that arise from the acquisition itself, it is also correct to mention that sometimes these acquisitions of goods can mean an investment, since these are carried out at home, bridges, roads, buildings with offices, departments or airports.

Now after mentioning all of the above, we can say that all these goods, services and investments have a defined value for the country, since each of them has a monetary value. 

Now if we take the total value of all goods, services and investments that are carried out in our country or in any other in a specific period of time, we obtain as a result of GDP (Gross Domestic Product), by means of the sum of these. GDP is the result of counting the goods and services that are in a state of total completion, with this I mean that those objects that are manufactured to be part of the integration of what will be the final product, are not taken into accountTo be part of GDP accounting.

For example if it occurs in the country wheels for cars, these are not counted, since they are manufactured to be part of the car and thus can fulfill their function, therefore, what will be taken into account for the accounting of GDP arethe cars in question, since they are the product that is in their state of total completion. Something that is important to mention about the accounting of GDP is that this is "internal", this refers to what is done within a country regardless of the nationality of those that produce within it.

conclusion

If I am Mexican and reside in the United States working and producing goods and services, they are taken into account in the accounting of the United States GDP and not Mexico, since, I am within the country of the United States. It is also necessary to mention that GDP is counted all goods, services and investments that occur in the country for a year, that is, the results are annual, it is correct to say that GDP serves to measure all the economic growth ofany country.