Answer to Question #78883 in Macroeconomics for Qi

Question

Suppose that Harley Davidson builds a motorcycle in the US using $6,000 in parts that were manufactured in Canada. If a consumer in China buys it, how does the motorcycle affect GPD in the US, Canada, and China?

Answer 1

Suppose that Harley Davidson builds a motorcycle in the US using $6,000 in parts that were manufactured in Canada. If a consumer in China buys it, then the motorcycle will increase exports and GPD in the US, will have no effect to GDP of Canada, and will increase imports and decrease GDP of China.