If a Japanese firm produces cars in Canada, that production should count towards

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Quizplus · Accepted Answer

The production of cars in Canada by a Japanese firm would be considered a part of the Canadian GDP. GDP measures the total output of goods and services produced within the geographical borders of a country, regardless of the ownership of the factors of production. Therefore, even though the Japanese firm owns the production facility, the production itself occurs within Canada and contributes to Canada's GDP. GNP, on the other hand, measures the total income earned by a country's residents, regardless of where they are located. Since the Japanese firm is not based in Canada, the production wouldn't count towards Canadian GNP. Similarly, Japanese GDP doesn't take into account production that occurs outside of Japan. GNI (Gross National Income) measures the total income earned by a country's residents, including income from abroad, but again, the Japanese firm's production in Canada wouldn't count towards Canadian GNI since it's not a resident of Canada.

If a Japanese Firm Produces Cars in Canada, That Production