This thesis starts with the status of trade and investment between China and Republic of Korea, using the theory of customs union, Intra-industry Trade, international direct investment etc to analyze the trade effect and the welfare of the China-Korea FTA. It also analyzes the investment effect. Meanwhile, according to the existing problems, this thesis put forward the effective policies that the two countries should take. The result of theory analysis and demonstration researches prove that the establishment of China-Korea FTA is beneficial to two countries at the basis of a series of related cooperation policies and mechanisms'setting up and improvement. |