The dynamic game analysis for international competition: A view of the labor theory of value

The competition among enterprises in two countries at different levels of development helps high efficiency distribution of resources of these countries in the world market, but it may also reduce their social welfare. According to labor value theory, the paper analyses, using the dynamic game method, the type of competition, then proves the existence of the optimal conditions of international competition maximizing these countries´ social welfare. This means that governments could intervene the international production behavior of enterprises in their own countries, then it will realize a win-win benefits in international competition between developed and developing countries.