The Compatative Advantage And Competitive Advantage Of China Financial Service Trade

The thought of comparative advantage was mentioned earliest in The Wealth of Nation of Adan Smith, then David Ricardo came out the theory of comparative advantage. By the research of Heckscher and Ohilin, factor was added into the theory and the theory of comparative adavantage was further perfected. With the development of international trade, people found that something happening in international trade couldn't be explained by the theory of comparative advantage. So, Michael Porter came out the theory competitive advantage of nations and constructed comparatively perfect theory system.International service trade came forth later in international trade, but with the share of it becoming bigger and bigger ,all the countries attached more importance to service trade. So, service trade was brought into multilateral trade system of GATT. In international service trade, the financial service trade developed later but faster. Finance was very essential to development of economic, which play an important role in International service trade. Uruguay Negotiation which began in 1986 mentioned conception of Financial Service Trade firstly and come to terms of Financial Service Trade Agreement.With opening of China financial market, the financial service trade faced opportunities and challenges never met before. This thesis was separated into three parts besides the foreword of chapter one. Classic Comparative Advantage Theory and Competitive Advantage Theory were discussed in chapter two. In chapter three, these two theories were used to analyze actuality of China financial service trade. In chapter four, the advantages and disadvantages were discussed, and relevant measures were brought forward to improve the competitive advantage of China financial service trade in the world.