Study On The International Competitiveness Of China's Garment Industry

The traditional comparative advantage theory regards that a country is able to enhance its domestic welfare by specializing its export trading according to its comparative advantage.As a country with abundant labor resources,China always regards labor-concentrating industry as its comparative advantage in export trade.Since reform and opening up,with the advantages of abundant labor resources,the China garment industry manufactures cheap and good products and has occupied the international market quickly.Besides,the international market share and export trade volume of China garment is also increasing steadily.In recent years,China garment industry is exposed to higher cost,harder international market conditions and other various pressures,the survival and development of China garment industry is facing a serious crisis.International competitiveness refers to the ability of an enterprise to decide the favorable price of its product and to occupy its market share.Usually,we measure the international competitiveness by the enterprise's ability to sell their products.Based on the above background,this paper reviews the study status of international competitiveness firstly.Then,we analyze the situation of China garment industry exports and find that it is now sinking into the problem of immiserizing growth.After that,this paper uses the revised demand elasticity model to measure the international international competitiveness of China garment export industry.The result indicates that the international competitiveness of China garment export industry is not significant.According to this result,we analyze the possible reasons of why China garment industry.In conclusion,we give our advice on building international competitiveness.This paper points out that China garment export enterprises can enhance their competitive power by using technological innovation to achieve cost reduction,adopting the differentiation strategy to improve the ability of price markup,promoting environmental protection concept in garment industry to carry out sustainable development and enhancing government supervision to standardize market order.