Abstract:

Tracing back to researches in international trade theories and international direct investment theories, this paper, drawing heavily on preceding researches, takes up the thread of international division of labor that is neglected by neo-classical economics, and develops it following X. Yang's approach. This paper intends to incorporate researches on international trade and direct investment theories into a unified analytical framework.

Key words: incorporation, international trade theory, international direct investment theory, international division of labor