An American farmer sells a truckload of sugar cane to an American sugar refinery for $500.The refinery extracts the sugar from the sugar cane and…

An American farmer sells a truckload of sugar cane to an American sugar refinery for $500.The refinery extracts the sugar from the sugar cane and sells it to Coca-Cola for $700. Coca Cola uses the sugar in its bottling plant in Toronto, Canada and the resulting Cola is sold inCanada for $1000. How will this string of transactions affect U.S. GDP? How will it affectU.S. GNP? How will it affect Canadian GNP and GDP?

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