Research And Evaluation. "interpretation Of The Mystery Of The Mystery Of The Two Leontief

Since the born of Leontief Paradox, great improvement has happened tothe international trade theory. A series of theories which aim to explain theLeontief Paradox constitute the main part of the New International TradeTheory after the second war. This thesis intends to research and comment ontwo theories of all: Technological Gap Theory, which was proposed by M.V.Posner, and Product Life Cycle Theory, which was proposed by R.Vernon.Basis on the review of former academic achievements, this thesis introducesPosner and Vernon's life-long contributions and how could they proposedtheir theories. Besides, this thesis also describes the two theories' maincontents, their explanations and extensions to Leontief Paradox, and revisionby the latter economists as well as their academic value and weakness. At last,this essay puts the theories into China's import and export practices to guidethe Chinese enterprises to focus on improving technology and takingadvantage of Product Life Cycle Theory to use FDI properly and effectivelyexpand their business abroad.