Question

In: Economics

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.

Solutions

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.


Related Solutions

Suppose you are the CFO of Toyota and that you manufacture your cars in Japan and...
Suppose you are the CFO of Toyota and that you manufacture your cars in Japan and export the vehicles to the USA. Assuming your current profit per car is $1,000 and you sell 10,000 this year, please answer the following and show your computations:    - From a profitability point of view, do you generally favor a strong or weak US Dollar versus the Japanese YEN? Why?    - If the exchange rate is 1 US Dollar = 1.20 Japanese...
The earthquake and subsequent tsunami in Japan had a significant negative impact on Toyota, reducing their...
The earthquake and subsequent tsunami in Japan had a significant negative impact on Toyota, reducing their ability to produce parts to be delivered to their manufacturing and assembly plants around the world. Using the laws of supply and demand as a construct, research and discuss the impacts on Toyota and the auto industry in general from such an event. How does a business remain competitive when prices must remain high due to a reduction in supply? Write a 750 word
Assume that the export price of a Toyota Corolla from Osaka, Japan, is ¥2,100,000. The exchange...
Assume that the export price of a Toyota Corolla from Osaka, Japan, is ¥2,100,000. The exchange rate is ¥87.59 /$. The forecast rate of inflation in the United States is 2.1 % per year and in Japan it is 0.0 % per year. Use this data to answer the following questions on exchange rate pass-through. a. What was the export price for the Corolla at the beginning of the year expressed in U.S. dollars? b. Assuming purchasing power parity holds,...
2.Assume that the export price of a Toyota Corolla from Osaka, Japan is ¥1,950,000. The exchange...
2.Assume that the export price of a Toyota Corolla from Osaka, Japan is ¥1,950,000. The exchange rate is ¥110/$. The forecast rate of inflation in the United States is 2.0% per year and is 0.0% per year in Japan. Use this data to answer the following questions on exchange rate pass-through. a. What was the export price for the Corolla at the beginning of the year expressed in U.S. dollars? b. Assuming purchasing power parity holds, what should the exchange...
Robots can be used in manufacturing and assembly operations that require accurate, fast, and versatile manipulation....
Robots can be used in manufacturing and assembly operations that require accurate, fast, and versatile manipulation. The open-loop transfer function of a direct-drive arm may be approximated by ??(??)??(??) = ??(?? + 10) ??(?? + 3)(??2 + 4s + 8) a) Determine the value of gain K when the system oscillates, b) Calculate the roots of the closed-loop system for the K determined in part (a).
Toyota's Pass-Through.  Assume that the export price of a Toyota Corolla from​ Osaka, Japan, is ¥2,150,000....
Toyota's Pass-Through.  Assume that the export price of a Toyota Corolla from​ Osaka, Japan, is ¥2,150,000. The exchange rate is ¥87.58​/$. The forecast rate of inflation in the United States is 2.2​% per year and in Japan it is 0.0​% per year. Use this data to answer the following questions on exchange rate​ pass-through. a. What was the export price for the Corolla at the beginning of the year expressed in U.S.​ dollars? b. Assuming purchasing power parity​ holds, what...
The U.S. (Home country) and Japan (Foreign country) are trading with each other in the auto...
The U.S. (Home country) and Japan (Foreign country) are trading with each other in the auto industry. Both are large countries in this market for cars. The U.S. imports cars from Japan. The U.S. demand curve for cars is given by:             D =210 – 30P The U.S. supply curve for cars is given by:        S = 30+ 30P Japan’s demand curve for cars is given by:        D* = 50 – 10P Japan’s supply curve for cars is given...
Using this MNC's (Toyota Motor Corporation) origin nation(Japan), outline why the culture of this country might...
Using this MNC's (Toyota Motor Corporation) origin nation(Japan), outline why the culture of this country might influence the costs of doing business in that country. Illustrate your answer with examples
Toyota Motor Company, headquartered in Japan, needs US$10,000,000 for three years to finance working capital for...
Toyota Motor Company, headquartered in Japan, needs US$10,000,000 for three years to finance working capital for its plant in Long Beach, CA. Toyota has two alternatives for borrowing: Borrow $10,000,000 in New York at 3.00% per annum. Borrow ¥1,200,000,000 in Tokyo at 1.00% per annum, and exchange these yen at the present exchange rate of ¥120/$ for U.S. dollars. For both loans, Toyota will make no payments until the end of three years, when principal and accumulated interest will be...
Mr. Asimov must replace the 8 robots on his assembly line. The Robo100 model costs $30152...
Mr. Asimov must replace the 8 robots on his assembly line. The Robo100 model costs $30152 per robot and they will last for three years. The EconoRobo model costs $10878 per robot and will last for two years. The Robo100 models will have an end of life salvage value of $7553 each. The EconoRobo models will not have any value at the end of their lives. The Robo100 models are also more energy efficient and it is estimated Mr. Asimov...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT