The difference between new and new trade theory and traditional trade theory

From the research scope, the traditional trade theory mainly studies inter-industry trade, the new trade theory mainly studies intra-industry trade under the condition of increasing scale and imperfect competition, and the new and new trade theory explains international trade and investment from the perspective of enterprise heterogeneity. The new international trade theory is more about explaining the internationalization path choice of multinational companies, whether to choose export or foreign direct investment for global expansion strategy. The new international trade theory analyzes the relationship between the heterogeneity of enterprises and the decision-making of export and foreign direct investment, and pays attention to the path choice of enterprise nationalization. There are two main modes of new international trade theory. One is the trade model of heterogeneous enterprises proposed by scholars such as Melitz, and the other is the endogenous boundary model proposed by scholars such as Antras. The former explains the choice of different enterprises in the same industry whether to export or not. The latter explains the choice of enterprise in resource allocation.