Trade And Investment Integration Of Theory And Our International Division Of Labor Policy

In the international economy field, international trade and international direct investment are the most basic economical phenomena. Both are interdependent and benefit each other.The economical reality has revealed that the scale of the international trade and international direct investment has close relationship. The phenomena has become more obvious after the economy globalization, for example, the development of transnational corporation has aroused a large amount of international direct investment, at the same time, the inter-company trade developed very quickly. But contrary to the close relationship in the economical reality, the traditional theories of international trade and international investment are separated from each other.The analysis method of new traditional international trade model completely repulsed the existent of the international investment. The international investment is not necessary or possible. Many theories explain the international investment also cannot explain the international trade. If we can bring up the theory of integrating international trade and international direct investment, then we can study the trade and industry policies from a broader perspective and on a solider foundation.The paper firstly summarizes the traditional theories of international trade and international direct investment and integrating international trade and international direct investment. Then want to break through the traditional analysis method, and re-analyzes the theory of integrating international trade and international direct investment using the research products of nonlinear science.For a long period, the linear analysis method has played an important role in the economics, and achieved great success. In linear analysis, the economy activity is separated into several factors, and every factor can be replaced by other factors. The relationship among these factors is just simple and linear. If all factors be added up, we can get entirety.But in reality, the economical producing is nonlinear. In the 20th century, the nonlinear science has achieved great success. And the theory is widely used inmathematical and physical. Along with the development of nonlinear science and economics, the nonlinear economics will become the major part of the economics.At the same time, the research on the point just begins. Although many experts has made great distribution to the nonlinear economics, the research on the international trade and international direct investment in nonlinear economics is very little.This paper points out the traditional linear function should be displaced by nonlinear function because of the breakage of superposition principle. Making use of nonlinear science research result, we bring up the theory of integrating international trade and international direct investment on the nonlinear foundation. At last, the paper make a conclusion which is : the difference in the quantity of factors of different countries is the basic power of the international trade, and the difference in quality of factors of different countries is the essential reason of international direct investment. The difference in quantity and quality of factors of different counties is the original power of international division of labor. The international trade and international direct investment use the difference in different way.Then analyze trade and industry policies of our country in this theory. At last, the paper point out new policy to open-up.