China's Terms Of Trade Change And Main Influencing Factor Analysis

Terms of trade is an important index that judges a nation's foreign exchange benefit change. The fundamental motive of a nation's participating in international trade and division of work is to gain trade benefit. For a long time, price terms of trade is considered one of important indexes for judging how much a nation gains trade benefits. The thesis holds that, if a nation's trade benefit is measured completely and precisely, consideration should be comprehensively shown for combing price terms of trade, income terms of trade and factor terms of trade.In order to deeply explore the essence of trade terms change, the thesis evaluates the price terms of trade, income terms of trade and factor terms of trade respectively. Taking the year of 1995 as base period and from the angle of practice, the author discusses the change condition of China's terms of trade index and thus draws the conclusion that since 1995 China's price terms of trade has strikingly decreased, income terms of trade striking increased and in recent years factor terms of trade has been improved and yet in the future double factor terms of trade will possibly deteriorate. The key points studied by the thesis are the main factors influencing China's terms of trade, including economic growth, technological progress, trade structure, foreign direct investment, exchange rate, customs duties, non-tariff barrier etc. It also analyzes how to improve China'terms of trade theoretically. Based on the above analysis, the thesis proposes the policy suggestion that it should further improve China's terms of trade and share more international trade benefit.