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Strategic Trade Policy And The Choice For Trade Policy After The China's Entry Of World Trade Organization

Posted on:2005-04-14Degree:MasterType:Thesis
Country:ChinaCandidate:C L LiFull Text:PDF
GTID:2156360122986090Subject:International Trade
Abstract/Summary:PDF Full Text Request
After the second war there have been new changes in international trade, and the traditional trade theory cannot give reasonable explanations for the new situations. In the introspection for the traditional trade theory, the New Theory of International Trade gradually came to being. In 1980s, along with the development of the New Theory of International Trade, the Strategic Trade Policy appeared in American. With the assumptions of scale economies and imperfect competition, the Strategic Trade Policy uses industrial organization theory to analyze trade problem. The appearance of the Strategic Trade Policy overthrows the optimality of free trade policy under the condition of scale economies and imperfect competition, proves the reasonableness of government intervention, and advocates that the appropriate using of the Strategic Trade Policy measures, such as tariff and subsidy, can improve the gains from trade.China entered World Trade Organization in 2001. Although we are required to further open markets according to the rules of World Trade Organization, we can't open markets wholly to carry out free trade policy due to the restrictions of economic strength and international market environment. Under the condition that traditional trade theory has not been suited to guide China's economy in the future, as a developing country, China should make a policy choice to combine Strategic Trade Policy with the frame of World Trade Organization by adopting the successful experiences of America's and Japan's applying Strategic Trade Policy.Beginning with the origin and development of Strategic Trade Policy, this article analyzes the distinction between Strategic Trade Policy and traditional trade theory and the merits of its existence and development, demonstrates the main points of Strategic Trade Policy in details, and advocates that it's necessary and possible for China to carry out Strategic Trade Policy in connection with the trade situation before China. At last, this article gives us some relative policy advice.
Keywords/Search Tags:Strategic Trade Policy, Export Subsidy, Extracting profits by duty, Scale Economy, World Trade Organization
PDF Full Text Request
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