When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada,the value of the furniture produced will be counted as a final good in
A)U.S.GDP.
B)Canada's GDP.
C)Brazil's GDP.
D)Brazil's GNP.

Question

Quizplus · Accepted Answer

The final goods and services produced within a country's borders are counted in its GDP. In this scenario, the furniture is produced in Canada using Brazilian lumber, so it is a final good produced within Canada's borders and will be counted in Canada's GDP. It is not counted in the U.S. GDP because the company is only using Brazilian lumber, not producing the furniture in the U.S. It is also not counted in Brazil's GDP or GNP because the final good was not produced within Brazil's borders nor by a Brazilian-owned company.

When Lumber from Brazilian Forests Is Used by a U