| It does not matter if you use Germany or the USA. iPhones or whatever gets produced in China, likely by Foxconn. Profit margins are small. I iphones get sold to Apple HK, apple HK sells them to Apple US or Apple Germany for a huge mark up. iphones are sold in the US or Germany for a small mark up. I don't know if this is apples setup but profits would be accrued in HK tax free. In the end it does not matter since. On the balance sheet China or HK is exporting goods to the US or Germany but all the profits land at a US company - apple. Amazon, Google, eba, Microsoft is big in Europe. Where do you see their products in the trade balance sheets? YOU DON'T. Microsoft is not shipping Windows CDs from the US to the UK or France or Germany. The bottom line: While the huge trade deficit of the US is not healthy, it is highly distorted and probably much lower than you think. "IMHO that sale wouldn't have any direct effect on USA trade balance and on USD supply/demand." People buy stocks in the US. They buy them with US dollars. Why are they buying US stocks? Because these companies are highly competitive. Why are they highly competitive? Most pay hardly any taxes and their products don't appear in any trade balance sheet. |