Analysis Of Our Competitive Power Of Service Trade Under The Liberalization

After the World-war Two, due to the deep international division of labor and the upgrading of global industrial structure caused by new technological revolution, the service trade has been developing rapidly. At the same time, the liberalization of the world's service trade is becoming a new trend. China entered WTO in 2001, and agreed to open the service market to the world gradually. Under this background, this paper focuses on the competitive power, affecting factors of service trade and its influence on the economic development.At first, this paper analyses the economic effects of the liberalization of the service trade. The economic effects can be categorized into the positive and the negative, and the positive effects are greater than the negative effects. To the developing countries emphasizing the negative economical effects, how to make use of the positive effects is an important issue.There are three principal views on whether the conventional comparative advantage theory can be applied in to the analysis of service trade. Some hold that comparative advantage can't interpret the service trade because of the different concepts of the service trade and commodity trade. Others believe that the service trade and commodity trade are not different in essence. The third view agrees that the international trade theories can interpret the service trade basically and recognize the flaws of the concrete theory. So it holds that emendation must be made to the theories of conventional trade. The deciding factors of comparative advantage in service trade are labor force, capital and...