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scale in R&D sector could be promoted, the long term growth could be boosted by the increase ininternational free trade (Gulati, 1998). On the basis of the effects of the restrictions on import and export, the authors try to do research on allocation, scale and redundancy effects. The study demonstrates that the positive spillovers from exports on the manufacturing development in one country could be slowed down by specific conditions and restrictions. On the other hand, the rate of positive spillovers from exports could be increased by a flexible and free international trade environment.

By means of providing various types of positive benefits to local manufacturing firms, such as achievement of scale economy effects, larger international markets, effectiveand efficient utilization of resources as well as the high degree utilization of capacity, national and international free tradecould largely increase the productivity of indigenous companiesin a large number of manufacturing sectors in several developing countries (Eaton and Kortum, 2002). In the aspect of many benefits related, it has been demonstrated in many researches that national and international free trade may positively have significant influence on the development of one country's manufacturing sector. For example, it is pointed out that when firms in developed countries buy products from firms in developing countries, the former group of firms can provide better ways which could improve the manufacturing process of indigenous firms in developing countries. It is due to the reason that buyers from developed countries require the products with lower costs and better quality. In the aims of realizing this target, the buyers in developed countries will transfer more managerial skills and advancedtechnologies about production, logistics and manufacturing to their suppliers in developing countries. Thereafter, by participating in national and international free trade markets,companies in developing countries could hopefully obtain the international best skills and practice that could promote productivitygrowth(Feenstra, 2003).

Comparative advantage theory
The competition is the key to success for a firm which determines the innovation, efficiency and effectiveness of implementing strategies. It is related to all sorts of activities. The competitive strategy requires a firm to find out the most advantaged and beneficial position in the industry and market place. Therefore, the aim of competitive strategy is to help firms achieve the core competence and set up the sustainable and profitable competitive position. The selection of competitive strategy concerns two areas. Firstly, it is something about the ways of achieving sustainable profit-making capability and conditions to meet this requirement. For different industries, the sustainable profit-making ability is different (Porter, 1985). Secondly, it is something about identification of determination for comparative competition positions. Even though firms have different profit-making ability in different industries, however, there are always some firms which make better profits than others in the same industry. While, the above two points are not enough to guide firms to a effective competition strategy. A firm may also have greatly limited profit-making ability even though it is in the high profit-making industry, if the competitive position it selects is not proper. On the cont