In Recent Years, Several Large Canadian Mining Companies Have Been

question 25

Multiple Choice

In recent years, several large Canadian mining companies have been bought by foreign companies. If some of the profits generated at these Canadian mines which previously flowed to Canadian owners are now remitted to foreign owners, then which of the following statements best describes the impact of the change in ownership?

• A)There is no change in either Canadian GDP or GNP.
• B)Canadian GNP falls and Canadian GDP is unaffected.
• C)The gap between Canadian GNP and GDP becomes smaller.
• D)Canadian GNP remains constant and Canadian GDP falls.
• E)Canadian GNP is larger than Canadian GDP by an increased amount.

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