Theorical And Positive Analysis Of The Comparative Advantage And Competitive Advantage In The Rise Of The Middle Area

Along with the rapid development of the communication and informationtechnology, the era of the economy-globalization is coming. The economy activity,including the trade, the production and the financing are no long to be constraint intonational boundaries. The world has witnessed two overwhelming trends in economicdevelopment, the first is the globalization of economy, and the second is theintegration of regional economy. Every country or region wants to take a good part innational competition, it should join the world opening. In new century, owing to theincreasing appeal for speeding up the rise of the middle area in China, thedevelopment of it has become a significant strategic project concerned by the peopleall over the country. So how to use international trade as "Engine for Growth" tospeed up the rise of the middle area is still an important problem that internationaltrade learner of the middle area must explore deeply to work out.Comparative advantage is playing a more important role in the foreign tradewhen the foreign trade becomes more important in the economic development of acountry and region. However, there are some contacts and differences between theconcept of comparative advantage and competitive advantage. The product withcomparative advantage is not always translated into the product with competitiveadvantage. It is very important to analyze the main influential elements, mechanismand approach that the product with competitive advantage is translated into theproduct with middle area international trade is the powerful engine of the world'seconomic growth, and consequently, a far-sighted and original theory is imperative.First of all, this paper develops the meaning of the concept of comparativeadvantage, based on the theories summarized. It is believed that traditional andmodern theories based on comparative advantage ignore the differences betweencomparative advantage and gained comparative benefit. Therefore, the product withcomparative advantage is not always meant product with competitive advantage inreality. But, subsequently, we come to a conclusion, by analysis of that how "The Diamond Model" is absorbed and applied in Korea, the competitive advantage is to beable to make great efforts to be created.Industry competitiveness is the important part of one country or one area'sinternational competitiveness. By the inspection of the competitiveness situation inmiddle area, we have had the clear acquaintance to situation of that's comparativeadvantage and competitive advantage in industry. Afterwards, along the main line ofthe basic elements—comparative advantage and market element—trade efficiency andsustainable element-the institution of arrangement, this paper analyses themechanism of why the product with competitive advantage in middle area istranslated into the product with competitive advantage, based on the theory of theeconomics of international trade and investment, property right and so on.On the key factor basis affecting comparative advantage changing into thecompetitive edge in analysis, the author tries to reveal the mechanism thatcomparative advantage changes into the competitive edge. It is believed thatcomparative advantage is the basic element, trade efficiency is the market element,warranty of institution is sustainable element, of which the product with comparativeadvantage is translated into the product with competitive advantage. Trade efficiencycan make the correlative theories more compatible, like theories of InternationalTrade and New System Economics, because it is involved in production cost andtrade cost. It will be beneficial to international trade.In the last, this paper takes a set of entire international competitiveness valuationstandard that IMD builds as basis, actual competition situation synthesizing middlearea various, brings forward middle area international competitiveness model "TheEight-Factor Model". In order to promote quick, much better development of middlearea foreign trade, drive entire national economy long-term stability, sustaineddevelopment and further, foreign trade of the middle area must have competitiveadvantage guiding type in mind as trade developing pattern.