Research On The Current Situation And Countermeasure Of FDI Based On The Terms Of Trade

Terms of trade is the significant index referred to one country trade benefit change. Through researching and analyzing the development and change of one country during the fixed time, we can clearly understand the situation, that the status for the country in the international division, obtain the trade benefit etc. Then it can provide some foundation for one country's trade policy, industry policy and some suggestion.Meantime based on economic growth theory, capital, labor and technology are the basic factor one country or area output growth. Foreign direct investment is not only contribute to economic growth through direct forming capital, but also indirect promote economic growth through upgrade host country's human labor accumulate, technology progress and industry rise etc. A lot of experience from both home and abroad shows that, foreign investments have become one of the most important powers for pushing the developing country's economic continue growth, under the economic globalization day by day.Since opening-up policy in 1978, as the largest developing country, Chinese foreign direct investment and foreign trade always continue to grow. One aspect is that foreign investment numerous flowing into, foreign trades speedy expand, especially the import and export of foreign enterprise occupy the half for Chinese foreign trade. On the other hand, Chinese terms of trade shows fluctuating even dropping. What is the relationship between them? This paper based on the FDI angle probed the Chinese terms of trade during 1980 to 2006, and then analyzes the trade benefit. Recognize these actual problem, under the big background for China have become the member of WTO, in a sense and object view, regard foreign investment and foreign trade, scientific and reasonable draw up interrelated policy and development strategy, it has the very significant for reality meaning.