contestada

When a u.s. company purchases and imports automotive parts from canada to use to build cars within the united states, this purchase increases the component of gdp while also net exports by the same amount. therefore, the purchase of automotive parts from canada causes in us gdp.?

Respuesta :

I believe there no overall change in U.S GDP
When we import the automotive parts from another country, the component of total investment will be increased and the net exports for similar products from our country will be decreased.
Since investment is positive value in the GDP while export is a negative value, there will be no overall change in the GDP.