How the iPhone is driving up the U.S. trade gap with China

[CHIMO]

The fat trade gap between the United States and China is one of the thorniest issues going. But, as two researchers note, sometimes there's more than meets the eye. Or, in this case, the 'i.'

Yuqing Xing and Neal Detert outline in a working paper for the Asian Development Bank Institute in Tokyo how production of the iPhone alone added $1.9-billion (U.S.) to America's trade deficit last year.

Even high-tech products invented in the United States, in this case by Apple Inc., won't boost U.S. exports, they write, but instead pump up the trade shortfall, in this case with the People's Republic of China.

"Most attention to date has been focused on macro factors, such as low savings in the U.S., insufficient domestic consumption in the PRC, and the PRC's exchange rate regime," the researchers say.

http://www.theglobeandmail.com/report-on-business/top-business-stories/how-the-iphone-is-driving-up-the-us-trade-gap-with-china/article1839039/

[Toucano]

1. Can't this equally be said of every other smart phone on the market?

The iphone attracts the largest attention because it has the largest share of the market at the moment. Some Blackberry devices are assembled in Canada, but their components are imported from China, too.

Especially telling is this bit:

Both countries record shipments as Chinese exports. So every time an American buys an iPhone, he or she is actually adding to their trade gap with China.

That could just as easily read, "Every time an American buys almost anything, he or she is actually adding to their trade gap with China."

[emulatorloo]

3. Don't confuse me with the facts!

(thnks for the reality check)

[CHIMO]

4. It

Can be said for many items.

But some new development, that a US firm comes up with, may result in a net trade deficit.

So eventually what is the net benefit?

[Toucano]

5. I guess the net benefit is the company, in this case Apple's increased share value

Which results in nice untaxed dividends paid to shareholders which trickle down to John Q. Public no wait...

which trickle across to...no it's uh

which trickle BACK to Apple when everyone upgrades to the latest and greatest version, six months later.










I do make myself laugh, at least. :rofl:

[Crazy Dave]

8. It's happy days if you run a sweat shop factory in China

They got people working 18 hour days plus overtime if they want it.

[muntrv]

2. You could say this about Sprawl Mart.

[westerebus]

6. How the i phone got its name.

From the I Ching.

No. Not the book.

It's the sound a Chinese cash register makes.

[Crazy Dave]

7. Well said from a computer made overseas n/t