Service trade competence research based on transaction cost theory

Enhancing the service trade competence was the fundamental needs of economic development. The relationship between the transaction cost and service trade competence showed a negative correlation. Based on the mutual impact analysis between transaction cost and service trade competence, used comparative analysis method, got a result that saving transaction cost was an effective way of enhancing the service trade competence. Companies should establish the image, improve technologies and use GATS to save transaction cost in order to enhance service trade competence.