A Discussion Of Application Of The Strategic Trade Policy In Developing Countries

Strategic Trade Policy rised in developed countries in the 1980s, and applicated by many developed. Because of the lack of theory and the restrictions of practical application, the practical application of the theory in developing countries is still in the process of trying. Under the trend of economic globalization, developing countries have called for economic progress, unwilling always lags far behind developed countries. Many countries have the means to explore and practice of economic takeoff, foreign trade and economic development of many developing countries, which is particularly important significance. Then the foreign trade development strategy is a very important question. In this paper, the problem of strategic trade policy in developing countries will do a study on the application. This paper roughly divided into four parts, starting from the strategic trade policy background, and giving a general presentation. Next section analyse the problems encountered in developing countries of economic and social development, and discuss the significance of its strategic trade policy. Then the conditions for developing countries to implement the strategic trade policy discussions, finally analyze the perspective of actual cases of strategic trade policy in developing countries. The article is still at the development of China's foreign trade, the establishment of China's large aircraft project, precisely the theory can be explained by the strategic trade policy.The first part assumes the traditional trade theory, which is not a good explanation of the new reality. Form the theoretical and practical aspects the part introduce the strategic trade policy background. After a strategic trade policy gives the basic content including transfer of profits and the external economic.The second part include three aspects:the challenges of economic development in developing countries,the gradual opening of the domestic market in developing countries and between the industrial development, the interests from industries of natural resource-intensive and labor-intensive is seldom, Western countries have never given up on government intervention in trade and the support of strategic industries. However, there are limitations of traditional trade strategy, including the strategy of import substitution and export-oriented strategy. After extraction the strategic policy of developing strategic trade instructive: Trade liberalization in a country under conditions of protection, support industries provide a useful idea. Economies of scale and importance to the role of high technology in international trade, highlighted the role of government intervention in international trade, contribute to further improve its analytical approach, developing foreign trade and deepening the theory.After these two aspects of the analysis, the third part of the whole article from the three major aspects of the implementation of the strategic trade policy conditions in developing countries: not all industries will be targeted for supporting trade policy strategy, we need to identify industries. Strategic trade policy and the implementation of it are also necessary to determine the duration of protection. Here two aspects through economies of scale models and industrial exposition.Then analyse external constraints of the international community. As the World Trade Organization provisions and special provisions for developing countries, the foreign trade environment is relatively relaxed, to provide space for developing countries to implement the strategic trade policy.The fourth part is the application of strategic trade policy in developing countries, including the case of India's software industry, and semiconductor industry in South Korea, We can sum up the successful experience in China's strategy to use the trade policy. Then Based on the analysis of the current development of China's foreign trade after China tried to point out the need for strategic trade policies. The final part use the case of large aircraft project with the State Council approved,to analyse the evidence of China Strategic Trade Policy desirability and feasibility.Finally give the full text summary, the one hand, in developing countries to use trade policy with the current strategic necessity and desirability, on the other hand, in the application of strategic trade policies, the economic situation should combine domestic and foreign environment, full research and demonstration the slightest carelessness could lead to a huge loss of entire industries, so should improve the domestic market mechanism, attention to the choice of strategic industries and the measures that taken and to enhance the government's ability to govern, etc., to ensure that the operational implementation of a strategic trade policy.