Traditional Culture Encyclopedia - Traditional culture - What is the traditional trade pattern of China?
What is the traditional trade pattern of China?
Neoclassical trade theory can better explain the current agricultural trade pattern in China.
Neo-classical theory is called neo-classical because most of its assumptions are the same as classical theory, which is the development of classical theory. Modern trade theory is a new trade theory. It is "new" because its assumptions are very different from classical and neoclassical theories, including imperfect competition, economies of scale and dynamic development. The reason for the transaction lies in the difference in price. Realizing relatively single production through division of labor, if there are economies of scale, will reduce the average cost of production, thus reducing prices and triggering trade.
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