International Trade Theory from the Chinese Perspective——A Review of the Strategic Theory of Comparative Advantage

The strategic theory of comparative advantage has carried on and developed the traditional theory of comparative advantage.It holds that choice of technological structure depends on the corresponding factor input structure.Only when the input of a company accords with local endowment and its comparative advantage is given full play,can it minimize costs in the choice of technological structure, thus making profits and achieving development;whether a country's development strategy makes full use of ius comparative advantage will determine its long-term performance.By summarizing and refining the practical experience of developing countries like China,comparative advantage strategists draw the conclusion that developing countries have to follow the development strategy of comparative advantage if they are to be transformed into industrialized countries and achieve rapid economic growth.