A Cooperation Game Theory On Strategic Alliance

Global and regional trade agreements is in the ascendant, the multilateral trading system of free trade gradually decline. In the background of world economic exchange pattern,as the global trading superpower, adjusting its foreign trade development strategy become a priority to China.Thus how to create a service trade nation after being a goods trade nation is the main target of Chinese’s reform and opening-upShanghai Pilot Free Trade Zone has been established on July2013. and it focuses on service trade and financial center.as the financial center of Asian region, Hong Kong will face the phenomenon that Chinese mainland will be fully open, and its shipping and financial center also will be challenged. In this paper, we compare the historical development, the regional environment, institutional environment, government functions of Hong Kong and Shanghai free trade zone, etc,by cooperative game and dialectical method. And then explore the possibility of goods, service trade and financial center between Hong Kong and Shanghai free trade zone.Our study shows that, Hong Kong’s goods trade and international transit center has gradually been replaced by ports in Chinese mainland, thus building goods trade alliances between Hong Kong and Shanghai free trade zone are less likely.In the other hand, There exists possibility of service trade and financial center between Hong Kong and Shanghai free trade zone,because of both have their own comparative advantage in terms of service trade and financial center. Secondly, subject to establishment of cooperative strategic alliance between Hong Kong and Shanghai free trade zone, no matter whice choice the other side makes, both of Hong Kong and Shanghai free trade zone can gain benefits that no less than the status quo, what’more, it can generate additional social benefits. At last, this paper expects to provide feasible suggestions for cooperation between Hong Kong and Shanghai free trade zone, by the rational analysis of establishing strategic alliances and the specific distribution of income.