Tuesday, January 11, 2011
iPhone and China Trade
The way the Bureau of Labor Statistics, for example, calculates the U.S. inflation rate is beyond reason. It's silly in a charming sort of way but nevertheless highly inaccurate on purpose.
The Wall Street Journal had a great article today on the iPhone and how each one sold anywhere to anyone in the world adds to the U.S. trade deficit with China.
What? Wait a second.
If Apple, an American company, sells iPhones by the millions all around the world why does this increase the U.S. trade deficit instead of reducing it? Isn't the whole point of international trade from an American point of view is for AMERICAN companies to sell goods and services the rest of the world wants to buy?
Good question, eh? Read the Journal piece. EXCELLENT.
Posted by Team Effort at 8:10 PM