Analysis of Government Role Based on International Trade New Theory

摘要

About the orientation of the government's role in a country's foreign trade is always a controversial issue in the international trade theory. Mercantilism thought the government should take strict control on international trade and advocated government adopting a policy of the limit the eight. Comparative advantage theory and factor endowment theory argue that the government should not intervene international trade; they advocated promoting the welfare of the countries by free trade. The new international trade theory produced in the 1980s - the theory of strategic trade policy believes that economies scale and imperfect competition market sponge structure, some measures can help to improve the level of a country's economic welfare through the proper use of strategic trade, fiscal policy measures and tariffs, subsidies. This theory will be the role of government in biochemical advocates government intervention in international trade in a positive way.