If you accept the online trade-in estimate, if you buy a new Mac, iPhone, iPad or Apple Watch, we will send you your old device. As soon as we receive it, we will check and check its condition. If all goes well, we`ll credit your original buying method and email the balance to you on an Apple Gift Card. Economist Donald Boudreaux said that „free trade improves efficiency and innovation.“ He explains that free trade, along with other market forces, „shifts labour to more productive uses that allow more efficient industries to prosper“ and leads to higher wages, infrastructure investment, job creation and a more dynamic economy overall. 7Source: Apple Insider, July 19, 2012. appleinsider.com/articles/12/07/19/made_in_america_apples_supply_chain_increasing_us_production Trump`s fourth-largest negotiator, Peter Navarro, called on Congress to pass a Reciprocal Trade Act that would allow the United States to impose reciprocal tariffs on all countries with higher tariffs if they do not reduce their tariffs and U.N. operations. This is a good solution, as all our trading partners have tariffs between 4.2% and 14%. They also use VAT, which averages 17%, while the average U.S.
tariff is 2.5% and we do not have VAT. It is undeniable that China has made significant progress in North America, particularly after its accession to the WTO in 2001. As evidenced by the large trade deficits of the three NAFTA partners with China, North America`s „exclusive“ value chains are less competitive, with the notable exception of automotive production (Gallagher, Moreno-Brid, Porzecanski 2007; Lamadrid et al., 2012) and electronics, and even in the latter case, many components are imported from China. The importance of these sectors – and also the energy sector – is linked to the large intra-American trade. Table 4. Bilateral trade in ICT products, Canada, Mexico, the United States and China (as a % of total volume). Source: Industry Canada, UNCTAD, data collected and compiled by the authors in April 2014. Bourdreaux theorized that a growing trade deficit is actually positive, reflecting investor confidence.
If a U.S. trading partner artificially oppresses its currency, the U.S. could see a larger deficit, „but this practice harms the trading partner, not the United States.“ In the report How the iPhone Widens the United States Trade Deficit with the People`s Republic of China, Xing-Detert (2010), the U.S. deficit, attributed to China`s exports, is due to a measurement problem. Statistics mask international flows that leave out indirect trading partners, as U.S. imports from China account for a significant portion of products actually manufactured outside the country. They pointed out that in 2009, China accounted for only 3.6% of the value. The remaining 96.4% therefore includes 16% of German products, 34% of Japanese components, 13% of South Korean production and 0.5% of American products. Given that the cost of labour for the assembly of finished products represents only a small portion of the company`s profits, the authors believe that the relocation of Chinese assembly plants to the United States could have an impact on reducing the U.S.
trade deficit, but not on the California-based company, which may even hold a 50% profit margin.