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Growing trade deficit is selling the nation out from under us (2003) [pdf]

(faculty.washington.edu)
162 points TaurenHunter | 1 comments | 4/4/2025, 9:20:00 AM | HN request time: 1.303s | source
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randyrand ◴[4/4/2025, 9:58:00 AM] No.43580117[source]▶

The USA captures most of the value from selling iPhones worldwide, but yet the entire value of an iPhone counts only as a Chinese export.

Something is not right with how we calculate these things.

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mysecretaccount ◴[4/4/2025, 10:04:00 AM] No.43580160[source]▶

iPhone sales don't count as a US export when calculating the trade deficit? Does anyone have information on this? Seems like a major issue indeed.

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thefounder ◴[4/4/2025, 10:11:00 AM] No.43580204[source]▶

Of course they don't because they are made in China. Do you think that Ford cars manufactured in Mexico count as U.S export?

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1. sam_lowry_ ◴[4/4/2025, 10:18:00 AM] No.43580242[source]▶

Not only China but let us assume iPhones are made in China only.

China gets a modest share of the profits, because Apple pockets the rest. Reinvesting a fraction in US and stashing most of the profits in banks across the world that use this money as leverage to buy US bonds, among other things.