Abstract:

A mathematical model has been built through an analysis of the profit and cost of opening - up policy of developing countries under the condition of globalization. Employing this model through actual data of China between 1980 and 1999, we come to a conclusion that China has not yet reached the best degree of opening - up to the world. Some suggestions have been proposed as to the opening - up policy of China in future.

Key words: economic globalization, developing country, China's opening - up, profit and cost