What does foreign trade do?

Steps/Methods

The advantages of foreign trade

1, the development of foreign trade, can be interchangeable, transfer of surplus and deficit, regulating the optimal allocation of resources.

2, the development of foreign trade, can save social labor, to achieve better economic efficiency.

3, the development of foreign trade, can be absorbed and introduced into the contemporary world advanced scientific and technological achievements, to enhance the country's economic strength.

4, the development of foreign trade, accept the competitive pressure and challenges of the international market, can promote domestic enterprises to continuously update technology, improve labor productivity and the internationalization of products.

Expanded Information

For a long time, China has been a trade surplus country with the United States and the European Union, and a trade deficit country with South Korea, Germany and other countries. Taking China's major trade surplus and deficit countries mentioned above as examples, analyzing China's trade imbalance with these countries can provide insight into the true structure of the imbalance.

From 2005 to 2009, the U.S.-China trade surplus was $45 billion-$61 billion lower under the value-added trade accounting than under the gross trade statistics, accounting for 26%-31% of the traditional trade surplus. The change in the China-Europe trade surplus under the two trade statistics is between $12 billion and $25 billion, accounting for 21%-50% of the total traditional trade surplus.

The actual export volume of China is not as large as that under the total trade statistics, which not only shows the real extent of China's trade imbalance, but also further indicates that China is still only a "big trading country" in global trade, and there is still a certain distance from a "strong trading country".

The value-added trade shows that the net increase in China's trade is not high, especially the creative increase is relatively backward. Therefore, we should face up to China's position in global trade, the largest export trading country does not mean "trade power".