Research On The Mechanism Of Establishing Dynamic Comparative Advantage Of Chineses Traditional Medicine Industry

The object researched of this paper is the international trade of Chinese traditional Chinese medicine industry. Beginning with comparative advantage, the paper researches the development of traditional Chinese medicine industry in international trade in dynamic perspective. Based on this, the paper goes with the basic idea of establishment of dynamic comparative advantage.The two clues of the paper are how comparative advantage develops from static to dynamic state, and how it develops from latent to dominant state. First of all, the paper locates the key factors that cumber comparative advantage of the traditional Chinese medicine, and shows the necessity of the change from static to dynamic state in knowledge. Then, the paper analyzes the solution of the problems. The traditional Chinese medicine industry should break through in two important directions: technology and market channel, so as to realize dynamic comparative advantage accordingly. In this part, the paper focuses on the meaning of the two kinds of dynamic comparative advantages and feasible paths respectively, and emphasizes the solution mechanism in reality.Next, the paper examines the interaction between technology and market channel, and describes the reciprocal interaction of the two aspects in the process of establishing comparative advantage. According to the paper, taking advantage of the reciprocal interaction will effectively lower the cost and risk of both two aspects, and realize the win-win situation as well as the dynamic advantage smoothly.Finally, the paper compares and researches two typical cases, makes some suggestions for the establishment of dynamic comparative advantage, and helps understand the mechanism.