unintended economic factors

In 2009, iPhone sales contributed to $1.9 billion to the US trade deficit with China, according to a recent report by economists at Asian Development Bank Institute.

“Even high-tech products invented by American companies will not increase the US exports, but to the contrary exacerbate the US trade deficits,” said the study’s authors, Yuqing Xing and Neal Detert.

The study found that flaws in conventional trade statistics greatly inflate the US trade deficit with China. But, based on the value-added approach, the iPhone trade would generate $48 million trade surplus for the US.

via iPhones inflate US trade deficit with China – International Business Times.

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