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 investment component of GDP while also decreasing net exports by the same amount. Therefore, the purchase of automotive parts from Canada causes no overall change in US GDP.
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 investment component of GDP while also decreasing net exports by the same amount. Therefore, the purchase of automotive parts from Canada causes no overall change in US GDP.
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