Breaking News
Comments
old account Frank Eory
User Rank
Rookie
re: Yoshida in China: $400 iPhones and skewed trade stats
old account Frank Eory   10/9/2012 5:55:09 PM
NO RATINGS
If what he said about trade deficit accounting is true, then the numbers are meaningless. The value-added accounting method is the only intelligible way to account for trade surpluses and deficits.

junko.yoshida
User Rank
Blogger
re: Yoshida in China: $400 iPhones and skewed trade stats
junko.yoshida   10/9/2012 7:55:35 PM
NO RATINGS
It is, Frank. But who knew? To my ignorance, I did not know, until I looked into this, that we weren't measuring trade in value-added terms.

Bert22306
User Rank
CEO
re: Yoshida in China: $400 iPhones and skewed trade stats
Bert22306   10/9/2012 8:07:33 PM
NO RATINGS
Well ... I don't buy this argument entirely, any more than I buy the argument that US corporations are taxed very little, *when that tax is compared with GDP*. That doesn't tell the whole story. A company does not make hiring and manufacturing decisions based on any theoretical comparison of local and federal taxes with GDP. The company worries only about how much *it* will be taxed. And a country's economy does not depend solely on high value added content. As we've discussed on here in other articles, manufacturing brings with it all manner of support industries too. The bottom line is always going to be the flow of real money. Put it this way. It would be difficult to support a country's economy with work only going to nuclear physicists and lawn care companies (a "slight" exaggeration to make the point).

Ogemaniac
User Rank
Manager
re: Yoshida in China: $400 iPhones and skewed trade stats
Ogemaniac   10/10/2012 2:56:07 AM
NO RATINGS
The only possible long-term solution is a general synchronization of tax policy, particularly on corporations and the very wealthy. Anything else, and accountants and lawyers will find ways to route money through whatever tax havens exist. The other possibility - everyone racing to the bottom and trying to BE the tax haven - can only lead to banana republics where the rich are essentially untaxed and control nearly the entire economy.

richard.neveau
User Rank
Rookie
re: Yoshida in China: $400 iPhones and skewed trade stats
richard.neveau   10/10/2012 9:15:20 PM
NO RATINGS
Don't all the parts flowing 'into' China before the iPhone is assembled get counted in the balance equations ?? Seems like if they did only the 4% assembly value add would be counted once all the flows are accounted for. Maybe 50% (or ?) of the 'parts' in the phone are made in China so maybe they are just transfered from the chip vendor factory inside the country to foxcomm so not ever an import or export. That would make it more than 4% local value added in the example given, just not all in the apple manufacturing step.

DMcCunney
User Rank
CEO
re: Yoshida in China: $400 iPhones and skewed trade stats
DMcCunney   10/11/2012 4:13:58 AM
NO RATINGS
"Trade is no longer bilateral, it's global." Lamy is right, but the implications are still making themselves felt. Consider the emerging discipline of supply chain management, which has evolved to deal with precisely the increasing decentralization of product manufacture. The parts that make up the finished product may come from all over the world, and sourcing them and insuring they are where they need to be when they need to be to *make* the finished product is a critical skill for anyone involved in that sort of manufacture. The world is flat, the economy is global, and *everyone* is in the process of finding out what that means.

anon1021353
User Rank
Rookie
re: Yoshida in China: $400 iPhones and skewed trade stats
anon1021353   10/11/2012 3:50:15 PM
NO RATINGS
There have been several length analysis on this topic. Most of these use the iPhone as the example. The conclusion is that most of the profit goes to Apple even though from a trade deficit perspective most of the gain is counted in China. Here is one of the many articles I've seen on the topic that was in Forbes: http://www.forbes.com/sites/forbesleadershipforum/2011/12/22/buying-from-china-is-in-fact-buying-american/ There was also an analysis in The Economist that came to a similar conclusion.



Flash Poll
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Engineer's Bookshelf
Caleb Kraft

The Martian: A Delightful Exploration of Math, Mars & Feces
Caleb Kraft
3 comments
To say that Andy Weir's The Martian is an exploration of math, Mars, and feces is a slight simplification. I doubt that the author would have any complaints, though.

The Engineering Life - Around the Web
Caleb Kraft

Surprise TOQ Teardown at EELive!
Caleb Kraft
Post a comment
This year, for EELive! I had a little surprise that I was quite eager to share. Qualcomm had given us a TOQ smart watch in order to award someone a prize. We were given complete freedom to ...

Design Contests & Competitions
Caleb Kraft

Join The Balancing Act With April's Caption Contest
Caleb Kraft
56 comments
Sometimes it can feel like you're really performing in the big tent when presenting your hardware. This month's caption contest exemplifies this wonderfully.

Engineering Investigations
Caleb Kraft

Frankenstein's Fix: The Winners Announced!
Caleb Kraft
8 comments
The Frankenstein's Fix contest for the Tektronix Scope has finally officially come to an end. We had an incredibly amusing live chat earlier today to announce the winners. However, we ...

Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)