Suppose that a vaccine manufacturing company owned entirely by U.S. citizens opens a new facility in Canada. Answer all three parts below. In each case, carefully explain your answer. a) What sort of foreign investment would this represent? b) What would be the effect of this investment on current Canadian Gross Domestic Product (GDP) and

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter19: International Finance And The Foreign Exchange Market
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Suppose that a vaccine manufacturing company
owned entirely by U.S. citizens opens a new facility in
Canada. Answer all three parts below. In each case,
carefully explain your answer.
a) What sort of foreign investment would this
represent?
b) What would be the effect of this investment on
current Canadian Gross Domestic Product (GDP) and
U.S. GDP?
c) What would be the effect of this investment on
future per capita incomes in Canada?
Transcribed Image Text:Suppose that a vaccine manufacturing company owned entirely by U.S. citizens opens a new facility in Canada. Answer all three parts below. In each case, carefully explain your answer. a) What sort of foreign investment would this represent? b) What would be the effect of this investment on current Canadian Gross Domestic Product (GDP) and U.S. GDP? c) What would be the effect of this investment on future per capita incomes in Canada?
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