Research On State And Countermeasure To Foreign Trade Competitiveness Of China

I. The correlative theory with foreign trade competitiveness i. The correlative international trade theory Absolute advantage theory thinks that one country has absolute advantages, viz. the product whose cost is the lowest has international competitiveness; Comparative advantage theory thinks one country exists comparative competitive advantage, viz. the product whose comparative cost is the lowest exists international competitiveness; Factor endowment theory thinks one product's competitiveness mainly comes from its competitiveness of production element price. The trade theory after war based on new technological revolution and changed trade structure analyzes the factors that influent one country's foreign trade competitiveness from a new point of view. Such as, demand preference theory thinks that the similar demand preference is causation of in-industry trade. The state competitive advantage theory of Michael Porter combines international trade & invests theory and competitive stratagem theory into the state competitive advantage theory. The state competitive advantage means that a country possesses the ability that makes its corporations or industry create and keep competitive advantage in some definite scopes. He believe that four factors such as production factor, demand factor, relative and support industry, the strategy,organization and competitive state of a company and two assistant factors such as government and opportunity are the key elements to the acquirement of the competitive advantage of one country. ii. The influence of foreign direct investment Foreign direct investment provide the host country not only capital but also new technology and some other invisible capital, such as the skill of organization and management,marketing net and so on. It promote the foreign trade,the increase of economy and employment of the host country by encouraging production,competing,renovating,saving and forming of capital. According to the theory of international investment, foreign investment can promote the industrial development of the host country and therefore lead to many effect, such as information of capital,outflow of technology,upgrade of industry,creation of trade,optimization of structure,inducement of innovation and so on. iii. The evaluation index of foreign trade competitiveness There are many indexes that evaluate international competitiveness based on the datum of imports and exports, and in this dissertation we only analyses several indexes used extensively. For instance, the possession rate of international market means the ratio of the total export value of one country to that of the whole world, which reflect the whole competitiveness of one country's export; The export advantage index which compares the export increase rate of one sort of product to that of one country can let me see the changing direction of export products'competitiveness in a certain period of time; The competitiveness index of trade which compares net export quantum of one industry or one kind of product to the whole import and export quantum can explain the international competitiveness of this product or this industry; The distinctive comparative advantage is the comparative advantage between the ratio of the export quantum of one kind of product or one industry in one country divide the total export value of the whole world to the ratio of the total export value of one country divide the total export value of the whole world,which present us the export advantage compares to the other export products of this country. II. The main factors that affect foreign trade competitiveness of our country i. Innovation of technology Technology innovation can boost up the advantage of export products and the relative price advantage and therefore the competitive advantage of export products by improving the usage of factors,economizing the managing cost,improving the quality of the original products,exploiting new products and some other approaches. The main difference of the economy increase and the development level between our country and the development countries is the difference of technology level and the capability of technology innovation. ii. The manpower As we have marched into the economy globalization age, the knowledge that based on the modern information technology has turned into the focus international competition; the ability person is the main body of transmitting and creating knowledge. This is mean to say that the present international economy competition is the competition of exploiting manpower. We are the most abundance country in manpower, but not a strong country in manpower, and we do not possess the demanded advantage of manpower that adapt to globalization competitiveness. iii.The environment of international market A good environment will facilitate the exertion of the comparative advantage,competitive advantage of our products, moreover it can make me clear the competitive gap compared our products to other congener products of foreign countries, it will promote us improving our products'competitiveness,and eventually enlarge our export.. However, we can see from the current situation that we will have to suffer for a long time three trade barriers: antidumping,guarantee measures and technology trade barrier. iv. Trade policy The government itself can't help an industry set up competitive advantage, but to consolidate the exist advantage of the given industry, it can promote the industry's development and upgrade and boost up the competitiveness of our industry by setting down trade policy. v. Foreign direct investment Since the implementing of open policy, the scale of FDI in china has been broadening, FDI has turned into the main factor that promote china enhancing productive capacity , introducing into advancing technology, upgrading industry structure, improving the international competitiveness of our products. III. The demonstration analysis of the main problems of our foreign trade competitiveness On the whole, the international competitiveness of our industrial products is obviously better than that of the primary products; we have international competitiveness mainly in labor-dense industry, whereas the competitiveness disadvantage in capital-dense and other higher levels. Seen it from the developing trend, our foodstuff and little finished products industry will maintain the relatively stronger international competitiveness in a long time; the international competitiveness of mechanical equipment and scientific instrument industry mount up steadily, it will turn into the main export industry of China in the new future; the international competitiveness of primary industry is low and still have thefurther dropping tendency. IV. Some advises on how to improve our trade competitiveness i. Restructure export competitiveness according to the theory of competitive advantage Although the trade industry of China enjoy a considerable quotient, especially in labor-dense industry China shows some comparative advantage, the comparative advantage is only a latent advantage, competitive advantage is just the realistic advantage. We must adopt trade development strategy oriented by competitive advantage, that is to say we should combine the short competitive advantage embodied by the current comparative advantage with long competitiveness formed by future competitive advantage, while the exist comparative advantage bring into full play, our foreign trade competitiveness advanced rapidly by the road of boosting up innovation capability,establishing industry developing layout,exerting industry congregating effect and so on. ii. Put in practice manpower policy Confront with the acute global competition, the most important thing is to solve the problem of manpower. On the one hand, we should take more investment on education, especially on the higher education, and bring up more generalist innovative person; on the other hand, we should introduced into ability person, build up inspiriting and restricting mechanism to appeal and hold capable person. iii. Attach importance to domestic requirement The domestic market's capacity of China is very great, the pressing ante requirement is increasing, nevertheless the domestic market is the real meaning of "market orientation", the established production mode ,organization structure and marketing management etc according to the...