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this paper aims to offer recommendations on how national and international governments do to make the most use of international and national trade, and how to make trade regimes and regulations more helpful and effective. It can be expected that this paper can hopefully contribute something worthwhile to the current research field of free trade and governments’ interfering activities.

1.3 Structure of the paper
On the basis of the background introduction, the literature reviews and theoretical foundations will be introduced and discussed, international free trade theories such as technological gap theory and product life cycle theory and other issues, the theories and literatures on governments’ interfering with free trade will also be discussed and analyzed in this section. Then the ways in which governments interfere with free trade will be discussed and analyzed, followed by the critical evaluation on the costs and benefits of doing so. Recommendations will be offered on the basis of previous discussions, conclusions will be made at last.

2.0 Literature reviews and theoretical foundations 文学评论和理论基础

2.1 Trade theories
American scholar Michael V. Posner(1961) put forward TheTechnological Gap Theory which can also be called as the Technological Gap Model. Besides the factors of labour and capital, this theory recognize technique as the third factor of production and analyze the impact of technological gap on the national and international free trade. For example, researchers in this area use this theory to explain the occurrence of international businesses between countries with different technological capabilities. Japan exports technological products such as cameras and TVs to China because Japan is more advanced than China. The Technological Gap Theory shows that with the industrial development in different countries, the technological advancement can also be accelerated but in different degree and this could create the technological gap among different countries. This technological gap can help the nations obtain comparative advantages with higher degree of technologies and this could promote the export of technology-intensive products (Baier and Bergstrand, 2004). The possibility of trade among different countries can be used to explain the imitation lag. However, as the country of technologies could be gradually imitated by the imitation country, the technological gap between them will also decrease and even disappear gradually, therefore, the trade between the imitation country and innovation country will be ended. The Technological Gap Theory offers a fresh perspective which can explain national and international free trade and the industrial development through the concepts of technological gap and technological advancement. Furthermore, it strengthens the important role of technological advancement and national and international free trade in promoting the development of industries. This theory is put forward based on the discussion of technological gap by other theories such as the Non-equilibrium Development Theory proposed by Hirschman (1958).

The International Product Life Cycle theory (IPLC) which is proposed by Vernon (1966) is another significant theory of industry development. The life cycle of product means the marketing process and development of products that can be di