Question

2. Identify the difference between GDP, GNP and aggregate output? Make 3 recommendations to revive the Canadian economy post Covid -19 pandemic. Justify your recommendation?

3. Perform Porter’s Five Forces Analysis for one of the industries given below. Justify your answers. Industry: Starbucks – coffee beverage industry, Samsung smartphone – smartphone industry, Automobile industry, Cable TV industry, Dental office, Clothing store

Answer 1

ANS 2

GDP - It is the worth of coutry's total production which is calculated for the one year of time ,it stands for gross domestic product .The formula of calculation is summation of consumption ,investments and net exports. It is also known as total value of goods and services produced within the territorial boundary of the country .It is used to measure the strength of countrys total income.

GNP-it us the value of GDP with the addition of total gains from overseas investment and with the difference from income earned by foreign nationals domestically.This is the total value of goods and services produced by the economy outside or within the country.It is calculated to see how the nationals are doing economically.

Aggregate Output - It is the income from the output of the country without the adjustments for the inflation,  taxation, or types of double counting, which means that aggregate income is calculated at the factor cost and not at the market price.It is that form of GDP which is the summation of consumption, expenditure and net profits.

Suggestions to revive the Canadian economy from post Covid -19 pandemic effects are that canadian government should emphasize more on public ewelfare schee son this situation ,programmes like unemployment funds could help those who were removed or were terminated from their jobs due to this pandemic and would also help them to sustain a livlihood. The second suggestion to the government is that government should work more and more on medical sector because no one knows when the situation could get even more worse and when the rate of active patients can increase again in near future . The third suggestion to the government is to ensure that people should follow the guidelines issued by the government to reduce the effect of the virus and also should ensure that strict corrective measures are taken to maintain the discipline.