The Comparative Advantages Of The Iron And Steel Trade Between China And Korea

Recently, some new characteristics and trends emerge in the iron and steel tradebetween China and Korea. If China and Korea could exert the complementarities oftheir products through communication and cooperation, it would boost thedevelopment of iron and steel industry in both countries, as well as the trade betweenthem. This thesis starts from the theory of Comparative Advantage. Depending onrecent statistics and RCA, the thesis deeply analyzes the comparative advantage ofChina and Korea. On the base of that, this thesis would give a view of the trade in thenear and long future and try to find the methods to accelerate it which would help usdraw a conclusion—there is complementarity between the iron and steel tradebetween China and Korea, China exports low-end products to Korea and Koreaexports high-end products to China. From the status of the industries of China andKorea, the complementarity will remain the same in the near future, and both Chinaand Korea will benefit a lot from the trade. Therefore, accelerating he iron and steeltrade between China and Korea will bring significance in strategy to both of thecountries.