Intel, an American company, has manufacturing plants in China that assemble U.S.-made components. Suppose one of these plants produces and sells a computer chip to a Chinese computer manufacturer. How is this sale recorded in U.S. international trade statistics?

Question

Quizplus · Accepted Answer

This sale is considered to be neither a U.S. import nor a U.S. export because the manufacturing plant is located in China, and the chip is sold to a Chinese company. The components used in the production of the chip may be considered a U.S. export, but the final product is not.

Intel, an American Company, Has Manufacturing Plants in China That