Measures And Analysis Of Terms Of Trade Of China's Manufactured Products

Terms of trade is an important indicator which measures a country's profitability of its exports relative to imports in a certain period of time, it reflects the profits in foreign trade in one country and its pros and cons is directly related to country's vital trade interests. No matter in theory or practice world science and government attach great importance to the issue that whether one country can make full use of their own resources in order to occupy the more favorable conditions and share with the benefits of foreign trade. In recent years, the trade of manufactured goods has become the main part of China's export trade and contributes to the economic improvements in many aspects. However, there have been more and more debates on the interests of foreign trade. At present, under the conditions of the constantly changing of business model and trade structures. China has deepening the participation of the economic globalization. So it is vital to analyze deeply whether our manufactured goods has brought benefits with terms of trade and also has significant reference and practical meanings for China when it decides which business model to choose in the following periods.This paper has defined net barter terms of trade, income terms of trade and factor of terms of trade first, and then described the relationships of each kind of terms of trade and their limitations when I use them to measure the profitability of one country's foreign trade. In the third chapter, I measure the various price indices of manufactured goods on the basis of previous research of China's terms of trade index and our own country's features of exports and imports in manufactured and classified manufactured goods area. In the following chapter, I analyze the influencing factors of terms of trade according to the tendency of our country's manufactured products. And finally in the fifth chapter. I propose recommendations and measures to improve China's terms of trade of manufactured goods in five aspects on the basis of the previous research.