Strategic Adjustment Of The Development Of Foreign Trade Of The Western Region

Since the implementation of the policy of reform and opening up to the outside world, international trade in China has been on a rise significantly. However, the differences of international trade development among regions remain dramatic. Therefore, it is of great importance to do research on how to promote the international trade in West China, reduce its gap with East China and achieve a balanced development. Especially after China's entry into WTO and the current implementation of the west China great development strategy projected by the Central Government, it becomes even more crucial.By analyzing the limitations of traditional exogenous comparative advantage theory ,this dissertation explicate the existence of striking differences in international trade between West China and East China. Moreover, it uses the trade theory of division advantage developed out of new classical economics to explain the real reasons why international trade in West China lags behind. The reasons consist of three points: low individual specialization, lack of internal division and low efficiency of transaction. It also further the idea that the development of international trade in West China should be instructed by the theory of labor division advantage. The specific measures can be put forward as follows: firstly, with the aims of improving the level of individual specialization, more emphasis should be put on deploying and training human resources, improving labor quality and their expertise; secondly, in order to enhancing internal labor division level in West China, it should take an active participating in the labor division both at home and abroad. West China should also make full use of its geographical advantage to develop trade in border area, take part in domestic labor division actively and hence promote the reconcilable development in West China and East China; thirdly, to decrease transaction cost and improve transaction efficiency in West China, it is necessary to build and strengthen the market transaction system and better facilities of infrastructure.