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Heterogeneous Resources--new Engines of the Foreign Trade

Author: WangFuWei
Tutor: ZhaoFang
School: Jilin University
Course: International Trade
Keywords: Economic crisis Foreign trade Heterogeneous resource
CLC: F752
Type: Master's thesis
Year: 2009
Downloads: 95
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Abstract


Traditional trade theory assumes that all of the enterprise is homogeneous. At the beginning of the 21st century ,research in the field of international trade gradually focus on heterogeneous enterprises. The thoughts recently constitute the main research direction of international trade and investment,and basicly generate two systems: The first,Melitz is represented, emphatically putting difference of productivity into the new trade theory, The second,Antras is represented.Yet recent empirical study shows that whatever enterprise’s scale, productivity and export-decision is, enterprise are heterogeneous,so it is very important to consider the differences among the enterprises to explain the causes of international trade. The latest trade theory regards "enterprise" as a research unit.Scholars ,such as Melitz,through establishing and expanding heterogeneous trade model, introduced heterogeneity and enterprise organization into international trade model , and explained the behaviors of trade、investment and international production organization and finally created a new international trade theory and empirical research at micro level.This is a globalization era,so enterprises faces new competition.The "new economy" eplenishs the theory of traditional enterprise competitive advantage,and give a good explanation to the modern sustainable competitive advantage theory.Currently the essence for those enterprises,in a dynamic and complex environment, keep the sustainable competitive advantage lies in the continuous improving heterogenous ability.Since July, 2007, The economic crisis, which was born in the U.S.A ,now become worse and worse,and gradually changed into a global financial storm. Eventually the storm has became the most serious economic crisis since the 1930s. The economic crisis has seriously affected the health of the global economy. From Wall Street to America’s entire economic, from the financial field to the entity economy, from the United States to Europe, Japan and other countries, governments are facing serious economic crisis, and China as an huge economic role must involves it.The economic crisis make those export-oriented enterprises difficult to run, and some have been collapsed.It caused unemployment, and this mainly happened in the Pearl River Delta, the Yangtze River Delta. In 2008, compared with the same period last year, Chinese exports to the United States in the first three quarters fell by 4.6 percent,and this negatively continue to fall.According to media reports, in the first half of 2008, about 6.7 million companys have went bankrupt or already been troubled, and the number is continue increasing recently. Since the end of last year, many Taiwanese businesses and Hong Kong corporations in the mainland were closed, and some closed to avoid debts maliciously. Business is not just difficult to SMEs,instead some large enterprises also suffer the crisis.For example about 15% products of the steel industry are difficult to export.In the first half of this year,because of the crisis orders reduced a lot and it was expected the industry will to the bad.According to the differentiation strategy(Michael Porter)and the international trade theory of new elements,I expiained the conception of‘heterogeneous’resources reasons for bankruptcy of our trade enterprises in China mainly are the following points: first,most products are homogeneous,this make industrial structure unreasonable and also put our country down to the bottom in the field of international division of labor;second, Enterprises’brand are not heterogeneous,and this make our trade enterprises short of“soft strength”;third,technical dissimilation make companys lack of competitiveness and because of marketing heterogeneity,the market seems very difficult to developed. Finally lack of heterogeneity of human recesous is also one of the reasons.The economic crisis turns to be fiercer.According to the report America’s economy will reach the end of this year, and this means that the economy in China ,in a long period , will remain worse.In this situation, enterprise’s survival and development will be a real problem,and this dose not just relates to the prospect of our economy, but also relates to the social stability, so the study of foreign trade enterprises makes more practical sence. The economic crisis obviously shows that trade enterprise have many drawbacks, such as lack of technology innovation and independent brands, financing ability and so on.These factors lead to lack of the competitiveness of export commodities. So how can make products more competitive?" Heterogeneity " is essentially in pursuit of monopoly factors. Specific such as: heterogeneity of technology, human resource, innovation and marketing, etc." Heterogeneity " resources are helpful for Chinese foreign trade enterprises to improve their efficiency, to develop international market , to attract international investment, to promote international competitiveness and to optimize the industrial structure.From reasons given above, the reasearch has very good guidance significance on the development of foreign trade enterprises of China.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade
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