From the perspective of the decision-making process,the author introduces a new variable——“judgment on trade gains”——and argues that only when gains from war amount to zero and the decision makers have a positive judgment about the benefits they will gain from trade exchanges will trade promote peace as the trade level increases.
Through the comparative analysis,this paper indicates that transfer pricing brings two kinds of incomes to Transnational Corporation,including trade income and investment income.
From the perspective of the decision-making process,the author introduces a new variable——“judgment on trade gains”——and argues that only when gains from war amount to zero and the decision makers have a positive judgment about the benefits they will gain from trade exchanges will trade promote peace as the trade level increases.
Considering wood chips and furniture are China's main export wood-based products, it is especially important to improve their terms of trade in order to increase the revenue.
Different from raw timbers, flake board, waste paper and wood furniture, the net terms of trade and the income terms of trade of logs, sawn woods, sheets, veneers, fiberboard, wood manufactures, pulp, papers, paperboard and most related products were improved in most year, and the revenues were increased due to the changes of the import and export prices.
On the basis of this simplified matrix,the author systematically analyzes and evaluates the relationship between scale economy and comparative superiority and that between trade model and trade benefit.
However, because of the accelerating in international economic globalization, it is gradually realized that only with the net barter terms of trade, it is not necessarily to explain the changes in economy increasing.