The Development Of Comparative Advantage Theory And The Choice Of Foreign Trade Strategies In Jilin Province

Foreign trade plays a more and more important role with the fast development of the world economic globalization. It becomes critical impetus in promoting the economy in one region into the world economic circle and improving economic growth in the locality. In the 21st century, structure of production develops"softly"under the condition of economic globalization. Technological knowledge-intensive industries and service industries will become the goal of trade development. This weakens the advantages of foreign trade in enterprises in Jilin Province which relied on mainly on comparative Advantage of factor cost in the past. This dissertation reviewed the traditional Comparative Advantage Theory, and analyzed the formation and disadvantages of new trade theory. The implementation of Comparative Advantage benefited developing countries within a short period of time, but it strengthened the lower structure of production in developing countries. Furthermore, it enlarged the economic distance with developed countries, and thus made developing countries fall into the"Comparative Advantage Trap". In order to avoid falling into"Comparative Advantage Trap", this dissertation proposed and illustrated that we can develop Comparative Advantage from three layers, that is, resource, outer economy and competitive advantage. Foreign trade strategies which are suitable for developing situations of world trade today are put forward. The key points of the strategies are to develop the advantages of resource, location and talented people in Jilin, to develop the properties which possess advantages in world competition, to form economy of scale, to establish optimum export structure, and to improve international competitive abilities. This has the real advisory value and salutary lesson to the economic growth in Jilin province.