A Foxconn factory in the southern Guangdong, China. The Taiwan-based company is Apple's main supplier of iPhones.BOBBY YIP
A roundup of the best economic posts on the Web
How the iPhone widens the U.S. trade deficit with China
From VoxEU, a column argues that "current trade statistics greatly inflate the value of China's iPhone exports to the US, since China's value added accounts for only a very small portion of the Apple product's price. Given this, the renminbi's appreciation would have little impact on the global demand for products assembled in China. ... If China's iPhone exports were calculated based on the value added, i.e., the assembling cost, the export value as well as the trade deficit in the iPhone would be much smaller, at only $73 million, just 3.6% of the $2.0 billion calculated with the prevailing method."
Energy up in smoke: The carbon footprint of indoor Cannabis production
With a H/T to Marginal Revolution, a breakdown of the energy and pollution costs in the U.S. associated with this emerging industry:
"...[i]door Cannabis production results in energy expenditures of $5 billion each year, with electricity use equivalent to that of 2 million average U.S. homes. This corresponds to 1% of national electricity consumption or 2% of that in households. The yearly greenhouse-gas pollution (carbon dioxide, CO2 ) from the electricity plus associated transportation fuels equals that of 3 million cars. Energy costs constitute a quarter of wholesale value."
"The Office" goes to India: Why bad management is keeping India poor
Also from VoxEU:
"The Office", a popular British television programme, has been shown in more than 50 countries. Its international appeal likely stems from its universal theme: managerial incompetence. This column looks at the case of India and shows how the poor management of its companies is holding the country back."