What Is the Definition of GDP? How Would the Value

question 2

Essay

What is the definition of GDP? How would the value of output produced at a Canadian-owned factory in Canada and a foreign-owned factory in Canada be treated in GDP accounting?

---

Definitions:

Production Capacities

The maximum output levels that a company or economy can achieve with the current resources and technology.

Vertically Integrated

A form of business organization where a company controls multiple stages of production or distribution within the same industry, from raw materials to final product delivery.

Divisions

The categorizations within a field or discipline based on different criteria or functions.

Finished Goods

Finished goods are products that have completed the manufacturing process and are ready to be sold to customers.