Discussion on the interactive relationship between international trade and financial development

【Abstract】there is a close relationship between international trade and financial development. Trade and finance are the two most important parts in the development of national economy. International Trade and financial development interact with each other. International trade has a certain role in promoting financial development， and financial development provides capital for the development of international trade and promotes the development of international trade.

【Key words】international trade； financial development

【作者簡(jiǎn)介】宋子涵，東北育才學(xué)校。

Introduction： With the development of the international division of labor and the acceleration of economic globalization， the cooperation between finance and trade is becoming more and more prominent in regional and regional. We should pay more attention to the relationship between international trade and financial development， and deeply study the importance of financial development and international trade relations.

Interaction between international trade and Finance

1. The promotion mechanism of financial development to international trade

The characteristics of the general financial development are mainly manifested in three aspects： the expansion of the total amount of financial assets， the gradual improvement of the function of the financial system and the increase of the total amount of foreign direct investment.

1.1 Financial development promotes the rapid development of international trade through the expansion of total volume. If a company wants to be based on the market， it must be continuously strengthened in technology， thus increasing the demand for funds， and the expansion of the total amount of financial assets has made the enterprise strong fund support， which provides convenient conditions for the new generation of technology.

1.2 Financial development promotes the development of international trade through the improvement of the function of the financial system. The basic function of the financial system is to achieve the allocation of resources in time and space under uncertain factors.

1.3 Financial development promotes the development of international trade through the increase of foreign direct investment.

2. The promotion mechanism of international trade to financial development

Trade liberalization is one of the effective ways for international trade to promote financial development. Through trade liberalization， the cost of financial control can be increased. Financial reform is the ultimate result. The outcome of trade liberalization is financial liberalization.

The development strategy of international trade based on financial perspective

2.1 Pay attention to the influence of financial market on international trade

Attention should be paid to the development of domestic market resources. Because of the instability of the international market， the market turbulence often occurs， but the domestic market is more stable. If we want to maintain a long-term and stable development， we can use the international financial policy， combined with the actual situation of China’s market to develop China’s international trade.

2.2 the development of international trade should grasp the financial policy and seize the opportunity of government support.If we can make full use of the development characteristics of each enterprise to combine its own industry， the international trade of our country will develop rapidly and grow increasingly.

3. Other strategies

China can adjust its development strategy according to market and trade development and financial development.Optimize the international financial industrial structure， reduce dependence on foreign markets， increase the development of domestic markets， and open up new areas of financial markets.

4. Conclusion

International Trade and financial development interact， promote and restrict each other. While facing the complicated world economic situation， we should analyze the theory with our national conditions. Make correct and effective strategies to improve the relationship between international trade and financial development， and further promote the steady development of China’s economy.

References：

[1]Guo Xiaoyu.The impact of financial development on international trade，2016.