The Effect Of Exhibition To International Trade From The Point Of Asymmetric Information

This dissertation discusses the relationships between the exhibition and the international trade and the concrete influences of exhibition to international trade export volume from the angle of asymmetrical information in detail. Owing to the existence of information dissymmetry between sellers and buyers, the own profit of the one in the information inferiority will be harmed, because the one has incomplete information is easily deceived by the other side that has perfect information in transactions. Then this situation easily causes the defect of transaction credibility and the increase of transaction expense, which are more serious in the long-distance international trade. Exhibition is one the keys to solve the asymmetric information problem in international trade. Exhibition has the functions of information accumulation, information exchange and signal demonstration, which can reduce the information dissymmetry and facilitate both sides to establish the trustworthy transaction relations.In order to confirm the relationships between the development of exhibition and the international trade export volume, we analyze the correlative dependence between them through the demonstration research. The result indicates that although there are not all corresponding relations, there is identical tendency between the number of exhibitions and the export volume in some area. We further innovatively study how the exhibition mechanism promotes international trade. And we propose that the exhibition reputation mechanism should consist of exhibition scale, specialization, the guarantee of the third party and so on, which form the aspects of signal demonstrations of exhibition sponsors and exhibitors. We discover through data analysis that the number of exhibitors' booths has positive relationship with trade volume while the dimensions and the frequencies of exhibition have the inverse correlative relations with the trade volume. The result, on one hand, confirms the function of exhibition scale in exhibition reputation mechanism, on the other hand, it also discloses the blindness in striving for large and all-round exhibitions and the negative influence brought by the instability of exhibition holding. Through the case study of Guangzhou Import and Export Fair, we further confirmed the hypotheses about exhibition reputation mechanism. In this foundation, we propose some suggestions in promoting the development of exhibition industry in our country.