A U.S. company produces goods in Canada. How is this production counted in GNP and GDP?

• A. Included in U.S. GDP, not in U.S. GNP
• B. Not included in either U.S. GNP or GDP
• C. Included in U.S. GNP, not in U.S. GDP
• D. Included in both U.S. GNP and GDP

Answer: (C)