Research Of Transformation And Upgrading Model For Trade Intermediaries In Qingdao

Since the arising of economic exchanges, intermediaries, as significant market participant, provide transaction service of middle links between traders. From 2006 to 2014, in Qingdao, a famous costal open city of China, average annual growth rate of all kinds of trade intermediaries keeps at 30.5%. In 2014, the amount of intermediaries has reached 20788, including 17468 foreign trade enterprises and 3302 international freight forwarders as per different business models.In recent years, trade intermediaries are facing giant challenges along with numerous opportunities due to the decelerated growth of foreign trade and the changing of business environment. The essay focuses on the model of transformation and upgrading of trade intermediaries in Qingdao. According to the researches on current operating situation and trade environment of trade intermediaries in Qingdao, the essay presents feasible and specific business models for trade intermediaries’ transformation and upgrading in Qingdao.Firstly, the essay introduces related division of labor theory, agency theory, transaction cost theory etc which provides fundamental basis for necessity and feasibility of trade intermediaries’ transformation and upgrading in Qingdao. Chapter three is a current situation research of Qingdao’s trade intermediaries from which shows in last decade, the amount of trade intermediaries is rapidly growing, but 80% of trade intermediaries’ registered capital is under 2 million. The overall strength is not strong. From the business models of two kinds of trade intermediaries, foreign trade enterprise is only a bridge to connect domestic and oversea traders and plays the role of information matching; the business scope of traditional international freight forwarder is limited to operations of simple links as shipment booking, custom clearance, transshipment etc. which won’t be sustained for a long time. Chapter four analyses the necessity for trade intermediaries’transformation and upgrading in Qingdao. First of all, it researches the development prospect of Qingdao’s foreign trade with Logistic’s growth model and predicts import and export trade of Qingdao will be insufficient in the next decade and will reach equilibrium status in 2025. The total volume of trade will maintain around 200 billion dollars which is not optimistic for trade intermediaries. Then this chapter analyses the challenges and opportunities that trade intermediaries are facing from four aspects including China and Korea trade zone, one belt and one road construction, the development of Qingdao pilot free trade zone and cross-border electronic commerce and points the necessity for trade intermediaries’ transformation and upgrading in Qingdao. On this basis, the essay proposes three kinds of models for transformation and upgrading and analyses transformation factors for trade intermediaries’ transformation and upgrading in Qingdao.In general, with transformation and upgrading of the trade intermediaries in Qingdao as the main reach object, the essay analyses necessity of transformation and upgrading through the prediction of the increase of trade volume and changing of trade environment and proposes several feasible models for trade intermediaries’ transformation and upgrading in Qingdao which offers new ideas for research in this field and decision reference for Qingdao’s trade intermediaries’ transformation and upgrading in the future and has some theoretical and practical significance.