Evolution of Theory of International Trade: Trade Incentives, Trade Structure and Trade Results

Theory of international trade has gone through five stages: classi-cal trade theory,neo-classical trade theory,new trade theory,theory of new classi-cal trade and new-new trade theory.There are three basic questions of internation-al trade theory: trade incentives,trade structure and trade results.Based on differ-ent assumptions,boundary conditions of influencing trade were different,as well as those influencing trade incentives;Trade structure changed from between indus-tries to between companies,so we can find international trade is replace by enter-prises division under globalization;Trade result is a sustainable effect to expan-sion of the international trade,and productivity promotion is the final result.Based on three basic problems and comparing various international trade theories,it reveals and evaluates the limitations of each international trade theory.