In any manual transmission, overall ratio of each gear = that gear ratio X final drive ratio. For example if 1st gear ratio = 3.4 and axle ratio is 4.5, then overall ratio in 1st (overall gear reduction in 1st) = 3.4 X 4.5 = 15.3
This is true if we assume we have 4 gears (2 sets of gears), first engaged gear set is 1st gear and the 2nd set is always pinion and crownwheel gears of the differential.
It is quite simple up to this point. However, I saw something like a 3rd gear set in some instructional pictures and animations about how a manual transmission works. One of them is the following here:
As you see above, 1st, 2nd, 3rd, 4th and 5th gears (gear sets) are identified clearly but it seems that there is another gear set which is engaged before any of the main gears. I mean the set I specified with a blue arrow. This gear set appears to have a ratio more than 1 : 1 because the green gear has a smaller diameter than the red gear. Therefore, it can affect the overall ratio noticeably. Imagine it has a 1.3 : 1 ratio, then the overall 1st gear would be 3.4 x 4.5 x 1.3 = 19.89!!**
(Please note that this is not a low range gear in 4x4 cars. I know what is the purpose of those gears and how they increase torque one step further for offroad climbing.)
If it was a 1 : 1 ratio, it would make sense (3.4 x 4.5 x 1.0 = 15.3) but it isn't. What confuses me here is that if there is such a gear set in all manual transmissions, why isn't it taken into consideration when it comes to calculating the overall ratio?