Trade Deficit

Not Really "Made in China"

1. Apple actually adds to the US trade deficit. Explain how this is possible.

2. What is the whole sale cost?

3. How much is credited to China?

4. How much should actually be credited to China?

5. If the true value number were used for China and the US how much less would the trade deficit be?

6. How much did US technology products add to the US trade deficit in 2010?

7. What should the actual trade surplus be for China to produce and sell Apple Iphones to the US?

8. How much is the actual number?

9. How does this news impact policy discussion on trade?

1. Since China assembles the IPhone it is an export from China and an import for the US. The trade deficit uses the wholesale cost of 178.96 but only 6.5 should be credited to China. If

2. Wholesale=178.96

3.How much is credited to China? 178.96.

4. How much should actually be credited to China? 6.5

5. 226.88

6. 1.9 billion

7. should be 48.1 million how much is it actually?

8. 2.02 billion