An Italian company opens a pasta company in Ottawa.Where are the profits from this pasta company included?

Question

Quizplus · Accepted Answer

The profits from the pasta company would be included in Canadian GDP as it is operating in Canada, and in Italian GNP as it is owned by an Italian company. GNP measures the income of a country's residents regardless of their location, while GDP measures the income generated within a country's borders, regardless of the ownership of the company.

An Italian Company Opens a Pasta Company in Ottawa