Suppose Canadian-based Bombardier cannot keep up with international growth so it builds and operates a new factory in Mexico. What would be the result of the future production from such an investment?
A) increase Mexico's GDP and decrease Canada's GDP
B) increase both Mexico's GDP and Canada's GDP
C) increase Mexico's GDP and leave Canada's GDP unchanged
D) decrease Mexico's GDP and increase Canada's GDP

Question

Quizplus · Accepted Answer

Building and operating a new factory in Mexico would increase Mexico's GDP due to the additional economic activity and production within its borders. Canada's GDP would remain unchanged because the production is happening outside of Canada, although Canadian-based Bombardier might benefit from increased profits or efficiency.

Suppose Canadian-Based Bombardier Cannot Keep Up with International Growth So