Abstract: In this paper, we use the iPhone as a case to show that even high-tech products invented by American companies will not increase th e US exports, but to the contrary exacerbate the US trade deficits. The iPhone contri buted US$1.9 billion about 0.8% of the US trade deficit with PRC in 2009. Unprecedente d globalization, well organized global production networks, repaid development of c ross-country production fragmentation, and low transportation costs all con tribute to rational…
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