International Trade Strategy Evolution and Pattern Discrimination under the Value Competition Mechanism

Abstract

International trade theory generally assumes that trade is carried out in the ideal state of perfect competition market and constant return on scale, but the reality is not so. Every economy will formulate some policies to restrict or encourage trade for the sake of maximizing its own trade interests. With the acceleration of globalization, the industrial division of labor, trade benefits and competitiveness of an economy in the global economy are considered from the perspective of value competition mechanism, and the change and future trend of international trade policy under the value competition mechanism are analyzed starting from the introduction of the concept of value competition mechanism. Starting from the integration of the value competition mechanism, focusing on the increase of the added value of the whole industry, combining the technological progress, industry integration and the transformation of factor input. Value through the extension of competition mechanism and integration, the mainstream trade theory deals with the main factors and system variables into a unified multi-factor panel data model framework for empirical analysis, found on the evolution of international trade strategy and pattern identify differences, including system quality and the cost difference split effectively the technological progress, economic benefit and sustainable development and full employment, to maximize the added value of the whole value competition mechanism, and finally realize the improvement of industry international competitiveness.