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    At Present, China'S Comparative Advantage Has Been Depleted.

    2013/7/31 20:43:00 3

    Comparative AdvantageBrandEnterprise

    < p > as a big trading country in the world, China's foreign trade has not been very good this year.

    According to customs statistics, China's import and export volume increased by 8.6% in the first half of 2013.

    On the surface, China's import and export trade grew by more than GDP in the first half of the year.

    However, from the trend, the stall is obvious.

    Although the import and export data of the first 4 months are fairly good, since May, with the state's efforts to crack down on the phenomenon of "one day tour in Hongkong", the import and export trade statistics have been largely "purified". Especially in June, the import and export volume of China has seen double negative growth for the first time in 17 months, of which the export growth rate has dropped by 3.1%, and the import growth rate has dropped 0.7%.

    If the water in the first 4 months is eliminated, the performance of China's foreign trade will probably be even worse in the first half of the year.

    < /p >


    < p > aiming at the difficulties encountered in foreign trade, some people think that China's comparative advantage has been depleted.

    And whether this view is true or not, at least indicates that some people's understanding of comparative advantage may not be able to withstand scrutiny.

    In fact, the generalized comparative advantage theory mainly includes David Ricardo's comparative cost theory and Heckscher Ohlin's factor endowment theory. Especially for Ricardo's theory of comparative advantage, although the statements are different, it is said that the two benefits are taken seriously and the two evils are lighter.

    In this sense, every country will weigh interests between comparative advantage and comparative disadvantage in the international division of labor.

    < /p >


    From a dynamic perspective, the comparative advantage of China in recent years is not static, like the sufficiency of labor resources has been less than the previous years.

    The change of position of comparative advantage also affects China's foreign trade structure.

    Along with the pformation and upgrading of foreign trade, some of the original advantageous industries, especially labor-intensive industries, are encountering strong challenges from Southeast Asian countries such as Vietnam and Indonesia. However, some industrial competitiveness, which is not obvious in the international division of labor, has been strengthened, such as household appliances, communication equipment and so on.

    Now it seems that there are many reasons for the downturn in foreign trade, which can not be completely generalized only by the theory of comparative advantage.

    In addition to comparative advantages, such factors as the European debt crisis, the appreciation of the renminbi, the rise of trade protectionism and changes in the international political situation are all obstacles to China's foreign trade.

    In this sense, the current dilemma of foreign trade is totally attributable to the loss of comparative advantage.

    < /p >


    < p > we should see that in the international division of labor, to foster strengths and circumvent weaknesses is only one manifestation of the theory of comparative advantage. In many cases, the two are not always clear.

    Generally speaking, although the comparative advantage is not the patent of the developed countries, most developing countries are doing "two harm taking lightly". In the case of participation in the international division of labor, it is easy to fall into the situation of impoverished growth. While the terms of trade are deteriorating, the ecological environment is also damaged.

    So, simply come to "two harm and take it lightly".

    By contrast, in the contemporary international division of labor, the developed countries are doing more "double benefits". In particular, the United States, through the use of the US dollar's dominant position in international finance, sometimes emphasizes the adoption of a strong dollar policy to curb import costs, attract international capital flows, and sometimes let the US dollar depreciate, thereby strengthening the competitive advantage of the United States in the international market.

    < /p >


    From P, it is not difficult to understand why China's foreign trade must be further pformed and upgraded, completely changing the extensive growth mode, strengthening quality awareness and brand awareness, and increasing the technological content and added value of export products.

    Only in this way can China get rid of the embarrassing situation of gradual "two harm taking light" in the future international division of labor, even if it has some trade-offs, it will also show more advantages and disadvantages, or "benefit from both sides", and ultimately occupy a more favorable position in the international division of labor.

    If China's foreign trade can really do this, it will eventually be accompanied by "happiness".

    < /p >

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