Suppose Canadian-Based Nortel Builds and Operates a New Factory in Mexico

Multiple Choice

Suppose Canadian-based Nortel builds and operates a new factory in Mexico. What would the future production from such an investment do?

A) increase Mexico's GDP more than it would increase Mexico's GNP
B) increase Mexico's GNP more than it would increase Mexico's GDP
C) not affect Mexico's GNP, but it would increase Mexico's GDP
D) have no effect on either Mexico's GDP or its GNP