In September, China’s Cnooc Ltd. purchased Canada’s Nexen Inc. in a deal valued

Question

In September, China’s Cnooc Ltd. purchased Canada’s Nexen Inc. in a deal valued at $15.1 billion. Cnooc is a Beijing-based oil producer and Nexen is a Calgary-based oil producer. Cnooc pledged to keep Nexen located in Calgary, as well as keep Nexen’s employees. Consider both Gross Domestic Product (GDP) and Gross National Product (GNP) of Canada and China. When Nexen produces new oil from its Canadian production facilities, _____.

A. Canada’s GDP and GNP will increase but China’s GDP will decrease

B. Canada’s GDP will increase and China’s GNP will increase

C. Canada’s GNP will remain unchanged but China’s GDP will increase

D. Canada’s GNP will increase but China’s GDP will remain unchanged

Explanation / Answer

B. Canada’s GDP will increase and China’s GNP will increase

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