Abstract

Country's overall welfare maximization as the optimal standard theory of trade policy, in reality, be full employment and economic growth targets replaced. Different trade patterns on employment and the impact of differences in economic growth, making the economic development of countries at different stages according to trading partner countries seeking development by Qi level, for different industries to take a different trade policy. Product differentiation and product weakened the vertical division of labor within the free trade of the trading nations of the impact of employment and economic growth, thus contributing to intra-industry trade based industries and countries adopt free trade policies. As a theoretic standard, to make a country's total welfare maximum for optimal trade policy has been replaced by full employment and economic growth in reality. Since different trade model has different effects on employment and economic growth, different countries adopt different trade policies for their trade partners. The differentiated products and intra-product vertical specialization weaken the impact of free trade on employment and economic growth, which is helpful for the free trade policy to be adopted