Influence Of Network Economy On Cost Structure Of International Trade

China is a high dependent country on foreign trade. International trade has played an increasingly important role in the whole national economy. Getting trade more efficiently has an important practical significance of improving our entire economy level.Traditional international trade is a quite complicated process. It needs not only diverse trade tools, but also two-sides trade talks over and again and information alternating. In general, the two sides exchange information through face-to-face negotiations and consultations or through letters, telephone calls, fax, and other communication tools in the traditional economic and trade activities. This kind of trade activity is limited by time and space. Along with high cost and cumbersome transaction process, trading partners that business enterprises can access to are very limited. Especially for SMEs, entering the international market is extremely difficult. It requires enormous labors, financial, and material inputs.After entering the 1990s, the information revolution, brought on by internet, pushed the society and economy ahead strongly, and caused great shock of traditional international trade from various aspects.The networking of international trade network, by the way of transforming and simplifying the process of traditional trade operation, has expanded the trade space, shortened the distance and time of trade, simplified trade procedures and processes, made intelligent and simple trade activities, improved its cost structure effectively, optimized the social resources, and promoted global economic development.However, how and in which aspects does the net-economy improve the cost structure of international trade? What problems do China's foreign trade enterprises should pay attention to for achieving networking? Studies of these topics have great significance for China's foreign trade system and adapting international standard. Especially after our accession to the World Trade Organization, research of this issue is more urgent and important. Continuing improvement of net-economy and increasing popularity applications of e-commerce have brought international trade unprecedented opportunities, as well as new challenges. To enterprises, it is an investment of putting e-commerce into international trade activities. There are also risks in investment; therefore, enterprises need an in-depth investment analysis, which is cost-effectiveness analysis of forecast. And then decision-makers can know that concrete goal and usage of network application in the international trade, make up an effective network application strategy, ensure doing international trade business successfully, get more opportunities for trade in the fierce market competition, and gain more room for survival.Based on the results of previous studies, combining practices cases, which use the network for international trade both at home and abroad, author see network as a brand-new technology. I use technological economics theory, by the way of researching network's influence on operation processes of traditional international trade, analyze and compare its function on cost structure between them, and then give corresponding recommendations which should be made to the problems when our foreign trade enterprises apply network. I hope that my study will play a reference on China's foreign trade to the electronic industry.The theme of this paper is the influence of net-economy on cost structure of traditional international trade. The article is divided into seven parts: The first part is "Introduction". This part introduces the significance, main contents, used research methods and ideas of this article in general, aiming to allow readers to get an initial understanding.The second part is"outline of net-economy and cost-management theory". It is a brief introduction of the concept and features of net-economy, cost-management theory and the influence on modern enterprise and international trade .. By showing a theory of net-economy and cost-management, I explain the background of research, including subjects such as net-economy is to the enterprises competition advantage, influence of net-economy on cost of international trade, and so on. The third part is "influence of net-economy on process of international trade business ". In this part, I have compared all operational links between networking trade and traditional trade on the base of introducing flow of international trade operations and the new model of net-economy. The contrasts of business process are premise and foundation of cost structure by research.The fourth Part is"impact of net-economy on the cost structure of traditional international trade". It is the focus of this paper. This part defines the concept of international trade cost structure at first, and then on this basis, discusses the influence of net-economy on international trade costs, from three aspects, purchase cost, transaction cost and transform cost. In final, I bring out the cost analysis model method on the basis of concluding and comparative analysis.The fifth part is "case study". Cases verify the analysis conclusion that network has reduced the cost of international trade and has improved trade efficiency from the perspective that enterprises apply network system.The sixth part is " conclusion and propose ". It is a summary of the full text and a part of the solution. It make the readers be able to review the main points and conclusions through this research papers, and according to analysis conclusions, and makes recommendations on how the enterprise should use means of network to reduce transaction costs.