If a Canadian citizen buys a smart phone made in China by a Chinese firm, what is the impact on net exports and GDP?

Question

Quizplus · Accepted Answer

When a Canadian citizen buys a smartphone made in China, it is an import for Canada. This increases the imports component of the net exports calculation (exports minus imports), leading to a decrease in Canadian net exports. However, GDP measures the value of all goods and services produced within a country's borders, and since the smartphone is produced in China, this transaction does not affect Canada's GDP.

If a Canadian Citizen Buys a Smart Phone Made in China