An interesting NYT article today reports that due to using conventional trade statistics,
“Even though Chinese workers contribute only about 1 percent of the value of the iPod, the export of a finished iPod to the United States directly contributes about $150 to our bilateral trade deficit with the Chinese.”
Is trade statistics generally compiled this way? If so, its policy implications would seem to be substantial. Also,
do rules of origin for customs purposes have anything to do with this?