Traditional Culture Encyclopedia - Traditional culture - The influence of China's labor force on China's comparative advantage in foreign trade

The influence of China's labor force on China's comparative advantage in foreign trade

1, abundant labor resources and sufficient productivity.

In China's economic development, cheap labor constantly supplements China's industrial production in terms of productivity. There are many sources of labor in China, most of them are migrant workers and migrant workers who supplement the labor force for urban economic development, mainly engaged in manual labor. Because China's population base is relatively large, China's labor resources can be well supplemented, far exceeding the demand for labor. Therefore, compared with foreign processing and manufacturing industries, the labor cost of manufacturing goods in China is relatively low, accounting for a relatively small proportion of production costs. China's abundant labor resources not only promote the development of domestic production, but also attract a large number of foreign enterprises to invest in China. With the further opening of international trade, the number of foreign enterprises is also increasing. Moreover, most foreign enterprises mainly introduce capital and growth lines, and combine them with China's abundant productivity for processing and production, because in the manufacturing industry, even with advanced skills, people still need to participate in the operation. Utilizing the abundant domestic productive forces can not only promote the expansion of production scale, but also reduce the capital savings of foreign enterprises, so that foreign-funded enterprises can develop productive forces rapidly. Therefore, abundant labor resources have provided sufficient advantages for the development of China's production industry, promoted China's competitive advantage in international trade, ensured the position and advantages of China's domestic trade in international trade, promoted the development and progress of China's economy, and greatly helped China's gross national product.

2. The labor force is cheap and it is easy to develop productivity.

In China, the development of productivity is not only based on the huge population, but also because of the low labor price in China, which can save a lot of money for enterprises investing in industrial production. This is also the reason why foreign-funded enterprises have set up enterprises in China. On the other hand, from the perspective of international trade, any country has the same problems in the process of developing its own economy and moving towards industrialization. That is how enterprises should rationally allocate scarce resources to maximize their resource advantages, and whether the productivity can be balanced between enterprise input and expenditure is a key concern of every enterprise, because it is related to the future growth rate of the national economy. In the past decades, China's traditional manufacturing industry has given full play to the advantages of cheap labor, and China's export industry is mainly composed of intensive industries. Mainly because the price of China's labor force level is much lower than that of western developed countries and some other countries in Southeast Asia, and the comparative advantage of China and other countries is mainly based on whether different commodities are intensive in use factors. Usually, in the absence of technology and capital, natural resources and abundant and cheap labor become advantages, which promotes the export of labor-intensive industries, makes the economy develop rapidly and improves people's living standards.