The components and robots for Toyota auto assembly lines in Canada are built in Japan.

The components and robots for Toyota auto assembly lines in Canada are built in Japan. Toyota assembles cars for the Canadian market in Ontario. Given this, choose the correct statement.

Select one:

a. The assembly line components and robots appear as exports in Canada's GDP.

b. The assembly line components and robots appear as investment in Canada's GDP.

C. The assembly line components and robots appear as a positive entry in calculating Canada's GDP.

d. The assembly line components and robots appear as imports in Canada's GDP.

e. The assembly line components and robots appear as consumption expenditure in Canada's GDP.

Expert Solution

Answer:(D) The assembly line components and robots appear as imports in Canada's GDP.

EXPLAINATION: As The components and robots for Toyota auto assembly lines in Canada are built in Japan.

So according to definition of GDP ( which is defined the final value of goods and services produced in an economy in a given time period)

production od assembly lines and robots are happening in Japan hence will be counted in the GDP of Japan not of Canada.

And further it will be imported to Canada then will be assembled in the car and that car will be counted in GDP of Canada.

Rahul Sunny answered 2 years ago

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