Exporter of home appliances across the board price hikes- Factor-dependent industries show a comparative disadvantage.docVIP

 PAGE \* MERGEFORMAT 5 Exporter of home appliances across the board price hikes: Factor-dependent industries show a comparative disadvantage Fair price information indicates that the Chinese export prices of home appliances generally raised by 10% - 15% and price factor is the continuing rise in raw material prices, coupled with reduced export tax rebate rate of 4%, household electrical appliances experienced an unprecedented cost pressure. Government and industry should be brought to this element of the export prices weakened price advantage should be sufficient attention, because such a thing is not an occasional breeze, shaved and then will calm right totally dependent on low-cost production of elements in terms of household appliances industry, this is a worthwhile warning signal. On the one hand some of the industry, household electrical appliances such as TV tuners, are faced anti-dumping charges against Chinese products in overseas markets at stake, on the one hand the rising costs in the country was again blocked in the export of the outside face of such internal and external Cross price pressures, we should really turn around to re-examine the way our industry. Do not know when, the classical economics theory of comparative advantage of China’s home appliance industry, rely on the development of the theory. In fact this theory on China’s home appliance industry has brought a great deal of misleading reports, that as long as factors of production have a price advantage, then we would be in the international home appliance industry, demonstrating our competitiveness. In fact the competitive advantage would not be decided by the price of production factors, the factor price advantage will not bring any advantage, but must depend on productivity, when it comes to productivity, technology, management and other types of knowledge becomes a key element of the variable. A new model for cross-border competition are: to acquire knowledge, technology and othe