Which of the following transactions would be included in the GDP of Canada?
A) Honda produces cars in Ontario.
B) Bank of Nova Scotia operates a branch in the Bahamas.
C) Nortel Corporation produces telecommunications equipment in the United States.
D) Microsoft Corporation produces Windows Vista in Redmond,Washington.
E) Coca-Cola produces soft drinks in England.

Question

Quizplus · Accepted Answer

Honda producing cars in Ontario counts as a contribution to Canada's GDP because the production occurs within the country's borders.

Answer: B 
 Bank of Nova Scotia operating a branch in the Bahamas does not count as a contribution to Canada's GDP because the economic activity is taking place in the Bahamas, not Canada.

Answer: C 
 Nortel Corporation producing telecommunications equipment in the United States does not count towards Canada's GDP because the production is taking place outside of Canada.

Answer: D 
 Microsoft Corporation producing Windows Vista in Redmond, Washington does not count towards Canada's GDP because the production is taking place outside of Canada.

Answer: E 
 Coca-Cola producing soft drinks in England does not count towards Canada's GDP because the production is taking place outside of Canada.

Which of the Following Transactions Would Be Included in the GDP