The four variables that account for the emergence of international business

【Abstract】The world economy has emerged from four consecutive years of slow growth and recession state and start entering a new round of economic upturn. Four variables that account for the emergence of international business.

【Key words】international business； variables

【作者簡介】潘冬韵，玉林师范学院。

I. Intrudution

Since the 20th century， the world economy has been developing rapidly. The rapid development of international business is a very important aspect of the rapid growth. In the number of international business， trade commodity structure and regional structure have made big changes. Many variables affect international business. This article identifies four variables that account for the emergence of international business， which are the continually development of economic， the strengthening trends in world economic in regional blocs， the acceleration of scientific and technological progress， and the development of multinational companies.

II. the continually development of economic

The world economy has emerged from four consecutive years of slow growth and recession state and start entering a new round of economic upturn，the world economic growth rate in 1991 dropped to 0.4% ， based on the 1992 to 0.8 % 1993 was 1.7%， rising to 3.1% in 1994 is expected to reach 3.5 percent in 1995 ， roughly half of the 1990s to maintain the growth rate of 3% ， slightly higher than the 1980 level of 2.9% .

In western countries， the general economic recovery and development， is an important reason for the international business emergence. U.S. economy in the second half of the 1990s， the growth rate was likely to remain at around 3%. Economic growth in Western Europe from 1993 was also a negative growth of 0.4%， increased to 2.6% in 1994， up 2.9% in 1995， and later years， the economic situation would further more improved， and stepped into the extraordinary growth， with the matter that the average annual growth rate would be high in the 1980s. Relatively， the situation in developing countries， the best in recent years has been showing a growth momentum， in 1994 economic growth rate of 5.6%， pushing the world to become an important force for economic development， not only the Asia-Pacific region ‘s most economically dynamic countries， maintaining high growth， but also Africa where the economic situation has been poor in， the economy is a turnaround. Latin American economies have been growing for four consecutive years of stability and economic model initially completed the conversion of the Middle East peace process with accelerated economic cooperation for the region and provide new opportunities for development. In the late 1990s， the Middle East may be some entity emerging industrial economy， led to a high level of regional economic development.

The development of economic laid a material and economic foundation of the emergence of the international business.

III. the strengthening trends in world economic in regional blocs

November 1， 1993 ， the European Union officially started. January 1，

Asia Pacific countries and regions economic links between different meeting to discuss regional trade and investment prospects， and this year it was held in Osaka in November and third ministerial meeting to prepare the agenda of the leaders， while drafting in 2020 before the Asia-Pacific regional trade and investment liberalization “ action plan.” officials attending the meeting agreed that the agenda should be trade and investment liberalization and economic and technical cooperation of two parts. The meeting was agreed to set up a private coordination group.

WTO， on January 1， 1995 was formally established and started running. WTO is independent of the United Nations， being responsible for the management oversight of the global trade order， the harmonization of trade relations， the development of trade policy and it is a permanent international economic organization for the future providing the most basic rules of global trade， being responsible for the implementation of multilateral trade agreements， periodic review of the members of trade policies， integrated treatment of trade disputes， strengthening cooperation with other international agencies.

IV. the acceleration of scientific and technological progress

In 1990s as the center motivation， microelectronics， biotechnology， information technology and new materials of high-tech areas， no only continue to accelerate development， but also increasingly towards practical use， industrialization era， with the popularization and application of high-tech， international division of labor deepening the continuous improvement of product quality and performance， product type， specifications are constantly changing， the production period which will be much shorter. Due to continuous product upgrades， countrys industrial structure and economic structures are promoted to a higher level， so that international interdependence and penetrate further deepened， thus promoting international merchandise trade continues to expand the scope. So that goods produced content， form and other aspects of organizational changes will occur. The development of international trade and new technologies are increasingly linked together， the international commodity production and trade of raw materials and the extensive degree of density greatly reduced， while the technology， knowledge intensity has increased greatly. Due to the diversification of consumer demand for social development through the exchange of commodities， and promote the development of intra-industry trade.

The development of international trade promotes the emergence of international business. To accomplish trade between different countries， international business provides opportunities to countries and organizations.

V. the development of multinational companies

After entering the 1990s， multinational corporations developed rapidly and changed the world of commodity production and circulation pattern. Currently， there are about 12，000 TNCs worldwide， controlling the worlds total export trade 2/3 of multinational intra-trade accounted for 40% of international trade. With the new development of the internationalization of production， multinationals will be a greater degree of control of international trade， affecting international business， international investment and technology transfer and other economic activities. Trade in manufactured goods， especially high-tech trade and capital goods trade within multinational companies accounted for the proportion will grow in the developed world trade in manufactured goods. Due to economies of scale effect， the industry rapid development of the international movement of goods became a major source of trade benefits. According to a survey in 1992， the departments concerned， intra-industry trade in developed countries accounted for 60% of international trade， Singapore， South Korea， Indonesia and other countries about intra-industry trade accounted for 45% of international trade.

As the world economy and the development of regional blocs new trade protectionism prevalent enterprises entered foreign markets with more difficulties. In order to bypass the host country trade barriers， in order to help reduce the research， trial production， production costs， expand market， complementary advantages， since the 1980s ， a number of large multinational companies have begun to borderless ， but until recent years ， large companies concluded between international strategic alliances work has only developed rapidly. Multinational coalition can use their own and his countrys different advantages， through international mobility of factors of production， in the world to achieve rational allocation of resources， to maximize the economic benefits of co- promote the development of international trade. It promoted the emergence of business due to the numbers of trade all over the world， which provides companies with communication to cooperate.

Conclusion

The development of international trade promotes the emergence of international business. So that the continually development of economic， the strengthening trends in world economic in regional blocs， the acceleration of scientific and technological progress， and the development of multinational companies provide an environment which international business starts in.

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