Which example will increase Canadian net exports?
A) A Canadian resident buys a swing set manufactured in Canada by a U.S. firm.
B) A U.S. resident buys insulin produced in Canada.
C) A Canadian resident buys a souvenir from a U.S. theme park.
D) A Canadian resident buys Apple shares.

Question

Quizplus · Accepted Answer

When a resident of another country buys Canadian products or services, it increases Canadian net exports. In this case, a U.S. resident buying insulin produced in Canada counts as an export for Canada, and therefore increases Canadian net exports. The other examples do not involve exports, as they either involve a Canadian buying foreign goods (A, C, D) or buying shares (D).

Which Example Will Increase Canadian Net Exports