Abstract With the transnational flow of production factors and the global sharing of information resources, national boundaries and spatial segregation are no longer the main factors that limit the market boundary and the division development. Through the modular network, the production process of specific product can be split into a series of separate modules which are scattered over different enterprises in different countries and in this case the entire production process is organized by a core enterprise, which draws a typical picture of “Supply Chain division”. This pattern of division changes the theoretical logic of the overall trade among which the role of domestic trade changes. The context of supply chain division provides a new logical starting point for domestic trade theory, updating the theoretical topics on domestic trade and offering important realistic basis for development of domestic trade theory.
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Received: 06 January 2016
Published: 15 March 2016
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Corresponding Authors:
XIE Lijuan
E-mail: xielijuan@rbs.org.cn
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