A Study Of The Current IDFT In Anhui Province

In the post economic crisis period, the international economy is recovering slowly with a substantial decline of the global trade development. While the sovereign debt crisis in some developed countries still exists, the international financial market is unstable and the world economy is recovering with uncertainty and unsustainability. In2012, China has surpassed USA in the total trade and thus has become the largest trade unit in the world. China economy relies heavily on the foreign trade and has prominent problems such as unbalanced, uncoordinated and unsustainable development. Therefore, China should concentrate on adjusting its economic structure. It is imperative to coordinate the development of the domestic demand and overseas demand, export and import,"Bring-In" and "Going-Out" strategy with the emphasis as adjusting the economic structure. The integration of domestic and foreign trade (IDFT) is a powerful measure to accelerate the transformation of the pattern of the economic development and economic restructuring. The economic boom mainly depends on investing and export driving at first and now on the coordinated development of consuming, investing and exporting together, not only making fully use of the two types of markets and resources, but also introducing the exporting products to the domestic market to expand the domestic demand and consumption as well as the channel to investment and domestic sales serving as an effective way to flourish the economy. This thesis mainly focuses on the elaboration of the IDFT and based on the theory of a coordinated development of domestic and foreign trade and the analysis of economic profit brought by the IDFT. It takes the domestic and foreign trade in Anhui as its subject and analyzes the obstacles faced in the development of the IDFT in Anhui province. Furthermore, the effective methods for the development of the IDFT will be presented by combining the geographical location and the development of domestic and foreign trade in Anhui and by comparing the development of Anhui with that of the city of Yiwu. The main structure of this thesis is as follows:Chapter I is a review of the researches of IDFT home and abroad. Through analyzing and comparing these researches, we make clear the background of IDFT, its present status of development and its objection. Then, the denotation of IDFT is elaborated from different perspectives such as enterprise, market and policy making.Chapter Ⅱ discuss the importance of IDFT respectively according to the Theory of Comparative Advantage which consists of Adam Smith’s Theory of Absolute Advantage, David Ricardo’s Theory of Comparative Advantage and Factor Endowment Theory from Heckscher and Ohiln, and the new classical international trade theory. These chapters also analysis three economic profits brought by the IDFT: first of all, the IDFT can help to restructure the regional industry based on a comparative advantage and lead to a reasonable division of industry; secondly, IDFT will enhance the efficiency of industry and trade structure wholly in our county, and help forming scale economy and industry cluster, lower the average cost, increase enterprise returns to scale; thirdly, in the context of stimulating our domestic demand, IDFT will not only promote the restructuring the industry, but also promote the domestic trade and domestic demand.Chapter Ⅲ discusses the present status of domestic and foreign trade in Anhui. This chapter makes a quantitative analysis of IDFT in Anhui. By comparing the IDFT in Anhui with that of other four central China provinces and the average status in China, it is found that IDFT in Anhui has a wide space for improvement. This chapter also deals with the obstacles and difficulties confronting Anhui from aspects of policy making, marketing and so on.Chapter Ⅳ is a case study of IDFT in Yiwu city. Through analyzing the obstacles Yiwu faced in the process of IDFT, their solutions to these problems and their current IDFT development model, this chapter summarizes lessons to be learned for Anhui in its own IDFT.Chapter Ⅴ combines the obstacles confronted by Anhui and revelations from Yiwu in their process of IDFT, concludes that the government should break the current market division and circulation obstacles and set up policies which are helpful to IDFT; Meanwhile, industry associations and agencies should construct a financing and investing system and market development system for circulation enterprise, provide talent, technology, information and enquiry services for circulation enterprise; Enterprises should strengthen themselves, develop new markets, develop self-owned brands, and gradually build large circulation enterprise.