The purchase of the GameCube:?

Question

A 14-year-old girl living in Victoria, BC, purchases a new GameCube game system at Toys "R" Us for $150. The game is manufactured by the Nintendo Co. in Tokyo. Toys "R" Us pays Nintendo $100 for the game system. The other $50 covers the cost of workers, rent, and profit for Toys "R" Us.

Nintendo exchanges the $100 at the First National Bank of Tokyo for 8,000 yen. The First National Bank of Tokyo loans the $100 to the Honda Motor Co., which uses it (and a lot of additional money) to expand its automobile manufacturing facility in Alliston, Ontario.

The purchase of the GameCube:

A. Decreases Canadian exports by $150

B. Increases Canadian imports by $100

C. Increases Canadian imports by $150

D. Increases Canadian exports by $100

Answer 1

"B" is right one.

Answer 2

B. Increases Canadian imports by $100

Because that is amount that Tokyo game manufacturer gets. But it keeps the amount in the First National Bank of Tokyo which in turns gives laons to a Japanese company to use in oNTARIO. . These subsequent happening has nothing to do with the value of imports from Japan..