Building A Model To Evaluate The Advances Of The Foreign Trade Industry

Foreign trade , which means countries all over the world exchange products and labors and communicate technique with each other , is called engine of economic growth by economists . In China ,foreign trade is one of the three engines of our country economic growth . With the fast development of foreign trade , China's economy begins high-speed growth . Since 2000 our country's average GDP growth rate is about to 15% . Although trade is developing rapidly , it exposes some problems . For example , the extensive economic growth mode , the irrational structure of import and export , excessive favourable balance of trade and high degree of dependence on foreign trade . In order to promote the development of foreign trade , we should choose the right industry . From the following aspects , countries of trading ,export products , development history and structure of trade , and past study results , the evolution of our foreign trade follows the theory of comparative advantage . It provides a theory foundation for how to choose a advantage industry .To construct an evaluation model according to the theory of comparative advantage is the thesis's main content . First , this article states the applicability of the comparative advantage in our foreign trade . Second , it constructs indexes from three aspects according to this theory , including cost , benefit and long run development . Third , according AHP method and the entropy weight method , this article determine the weight of each index . Fourth , it calculates the compound index using the comprehensive evaluation method and classifies the industries . At last , this article apply the model to Chongqing's trade industry to validate the model and propose some ways to choose the advantage industries and promote the development of our foreign trade .