Within A Foreign Trade Foreign Trade Companies Under The Conditions Of Integration The Value Of Recycling And The Strategic Adjustment

Considering the combination of domestic trade and foreign trade, Ministry of Commerce of the People's Republic of China was established in 2003. It indicates the extermination of foreign trade privilege as well as favorable trade environment for domestic business. Naturally, it produces great impact especially on foreign trade companies.Because foreign trade and domestic trade face the same condition, the value chain keeps completely and seamlessly connected between foreign market and domestic market. More parts of the value chain a foreign trade company can take hold of, more competitive the company becomes. Before, foreign trade companies used to control the value chain dependent on the monopolized import and export right. However, the privilege is deprived which pushes many companies into the difficult conditions eventually. Therefore, they have no other choice but to remodel the foreign trade chain in order to survive. In a word, the tendency of the combination of domestic trade and foreign trade is obvious. It brings to the foreign trade companies broad market demand as well as more advantageous competitors and challenging environment.This paper puts the value chain theory, which was founded by Professor Michael E ?Porter, in the analysis of the value added activities of foreign trade companies, and puts forward three ways to remodel the value chain: value chain forward integration, backward integration and vertical integration. At the same time, the paper cites three representative instances to demonstrate the detail measurements foreign trade companies should use under different conditions. The methodology of case study is used through the whole demonstration, and at the end of the paper, it comes the conclusion that the development of foreign trade companies cannot be isolated from one country's economical environments, and the value chain remodel of foreign trade company should be focus on two important industrial functions, which include the circulation function and production function.