The Analysis Of The International Competitiveness Of Export Enterprises In Zhejiang Province At The Later Stage Of The Financial Crisis

Zheiiang is one of the biggest foreign trade provinces in China. Since the reform and opening up, foreign trade has gone through a rapid development and made a great achievement in export and import in Zhejiang. The contribution rate of foreign trade and the average annual growth rate both rank the whole country. The ratio of dependence on foreign trade of Zhejiang province is above60percent, which shows the great importance of the foreign trade to Zhejiang economy. The subprime mortgage crisis that arised in the second half of2007detonated a new mum of financial crisis in America. In the background of the integration of global economy, the crisis of Wall Street rapidly spread to all the main financial systems in the world. It has become a global financial crisis. At the end of year2009, sovereign credit crisis arised in Greece and Iceland, which symbolized the outbreak of European debt crisis. This global financial crisis casted a shadow over the growth of world economy and will inevitably influence international trade of our country. In recent years, rapid appreciation of RMB, rising of raw material price and labor costs have already brought great negative influence to foreign trade enterprise in Zhejiang province. The global financial crisis in America and Europe made these enterprises confronted with greater difficulties and unprecedented shocks. This paper will research how to improve the international competitiveness of Zhejiang export trading enterprises at the late stage of the financial crisis.Firstly, the paper starts from the analysis of the export enterprises of Zhejiang. It analyses in detail the situation and impact on Zhejiang foreign trade before and after the crisis in the form of foreign trade and economic data. It also makes SWOT analysis of the enterprises. Secondly, it researches the transmission mechanism of the financial crisis on foreign trade. It gives a detailed analysis of income effect, exchange rate effect, trade finance effect, industrial linkage effect and also all the results and influences they bring together to the foreign trade. Finally, the paper uses three evaluating indicators of international competitiveness, the Export Market Share Index, the Revealed Comparative Advantage Index and the Net Trade Ratio Index, to research the current situation of Zhejiang export enterprises. Then it compares and analysises the international competitiveness indexes of a range of Zhejiang’s export products, and also the different indexes between Zhejiang and other big export provinces. It researches the changes of the indexes with the time passing and the relationship to the financial crisis as well. Finally, based on the results of theoretical analysis and empirical research, this paper provides Zhejiang export enterprises some suggestions and countermeasures from both the enterprises themselves and the government on how to increase the international competitiveness, in order to dealing with the financial crisis and seeking further development.