Friday, February 11, 2011

Do not blindly striving to export trading power

 Do not blindly striving to export trading nations
in today's international market, China has become a veritable trade power. According to the World Trade Organization statistics, in 2006 China's export 969 billion U.S. dollars, is the world's third largest exporter, ranking second only to Germany and the United States, but more than Japan. However, China's largest trading nation as a whole and do not mean that all goods must also strive to be the export of large international market.
Needless to say, of a particular commodity said, become a major exporter on the international market is conducive to States not only to strengthen their own influence on the international market, but also conducive to economic advantages of scale and enhance their own in the international market competitiveness. But we should also see the other side of things . In fact, certain commodities, the international market exporting countries have relatively high price to pay.
should be noted that the international market can not do without certain resources to support endowments, but China's export trade the development of the resource conditions have to be more constrained. On the one hand, land, capital, natural mineral resources in China are definitely not rich variety of resources. On the other hand, technology and other resources in China belong to low-level variety of resources . In contrast, China's abundant labor resources and never have some, but in recent years, coastal economic development and the contradictions between the labor shortage is emerging. In this case, the more need to emphasize how the factors of production to be limited reasonable configuration, but most need at this stage clear that some of the resources will be centralized configuration, or be scattered distribution.
the past, we in the development of export trade too much emphasis on the process of economies of scale, while not enough emphasis on economies of scale of . In fact, additional input on certain categories of goods may be some of the more economies of scale, while in other categories of goods there may be additional input on the more some of the scale of economic effects. to Comparison of the scarcity of domestic capital, for example, assume that the total amount of domestic capital K1 + K2, all for the production of export commodities X1 and X2, which, for the production of export goods the amount of capital X1 and X2 were K1 and K2. without regard to Other elements of the case of input costs, the total capital of K1 + K2, respectively, for the production of export goods may be expected by X1 and X2 respectively, the production function of Y1 and Y2, and all the expected benefits compared to Y1 (K1) + Y2 (K2).
Now, the assumptions to be changed. assume that the total amount of domestic capital K1 + K2, all for the production of export commodities X1. do not consider other factors in the case of input costs, will total K, capital for the production of export goods X1 production function may be expected for the Y1 (K1 + K2). Objectively, if Y1 (K1 + K2)> Y1 (K1) + Y2 (K2), it indicates that it is necessary to the limited pooling resources, economies of scale play, make their own individual commodities on the international market, exporting large. Conversely, if Y1 (K1 + K2) First, if the domestic limited resources to produce more, many different types of �� exports will undoubtedly expand the international market for exports space increases. In fact, in the case of small supply, and further increase the export volume can only make the international market supply curve and demand curve shifted to the right during the flat section to achieve balance. In contrast, if the limited domestic resources to produce a narrow range of bulk export commodities, exports are likely to make the international market expansion space narrowing. In fact, in the case of large-scale supply, further increase the export volume can only make the international market supply curve In the right process with the steep section of the demand curve is balanced. In fact, due to export more excessive to some extent, China's exports of fur in 2006, non-knitted garments, steel, chemical fiber filament, railway vehicles , waste, aquatic products, oil and other types of commodity export prices fell significantly.
Second, with respect to a wide variety of �� exports, the bulk export commodities in the international market will face more trade barriers. should be see the growing trade protectionism in the proliferation of cases, large-scale exports of a commodity in the local area may exacerbate trade imbalances, threatening the survival of their foreign counterparts, and thus China will encounter in a wider range of anti-dumping, subsidies, special safeguard clause, technical barriers to trade and other trade barriers. WTO's statistics show that the second half of 2006, a total of 19 members of the WTO anti-dumping filing 103 new, from the same period last year increased by 7 to 96 from . China remains the world's largest victim of anti-dumping measures .2006 in the second half, the number of anti-dumping cases abroad, China ranked first in the members, for 36 cases, an increase of 3 cases. In 66 cases the final anti-dumping measures taken in cases of Chinese products to take the final anti-dumping measures the number of cases among the first, for 22 cases, unchanged from same period in 2005.
Third, despite the various careen scale expansion of production of export commodities will bring upward pressure on factor prices However, as the production of different export commodities are not completely replace the necessary component elements of great increase in the number of export commodities on the elements of production brought about by the upward pressure on prices may be diluted in a wider context. The difference is, the bulk of exports the expansion of production scale is likely to lead to a serious imbalance in supply and demand of a particular element, and then increase the corresponding costs of production factors. In recent years, due to the low level of repeatability of the domestic steel industry is relatively large-scale investment in domestic iron ore increasingly tight supply of iron ore imports are becoming ever larger, international market iron ore prices in 2005, 2006 and 2007 increased by 71.5%, 19% and 9.5%.
not difficult to see In many cases, the trading powers in the process of expanding the international market, the challenges faced by small countries to be more than trade. Of course, I oppose the export trade power does not mean blindly striving to Yigai against enterprises to expand the international market, but to be more stressed as a prerequisite for the export trade power, which is a big trading economies of scale brought about by greater than the diseconomies of scale brought about by the effects. If the above condition does not hold, but also not be forced to fight for an export trading power of the hat, in time, in China in a number of goods to wear a few more top-hat trade of small countries might also be.

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