Exports to Foreign Affiliates $203 billion
U.S. Multinational Corporations
Imports from Foreign Affiliates $252 billion
Exports to Non-affilates $328 billion
Imports from Non-affiliates $426 billion
Note: Total U.S. Exports: $1,037 billion Total U.S. Imports: $1,854 billion
One example of a typical supply chain may be that for Apple Computer’s iPod music playing device. This is made by a manufacturing chain that stretches across several countries in the Pacific basin. As shown in Figure 2, the value of $144 for an iPod imported from China in 2005 had its major parts and services originate from China, the United States, Japan, South Korea, Taiwan, and Singapore.6 Each of these major components, moreover, may have involved parts from various countries of the world. The iPod supply chain included design, supply chain management, parts production, assembly, shipping, distribution, and retail. Note that less than
6 Greg Linden, Kenneth L. Kraemer, Jason Dedrick, “Who Captures Value in a Global Innovation System? The Case of Apple’s iPod,” Personal Computing Industry Center, June 2007. 10 p.