Study On The Driving Force Of Enterprises Relocation Under The Change Of Business Cost

In the marketing economy, there is industry transfer from eastern coastal areas to the Midwest.Meanwhile some private enterprises shift from less developed areas to the central cities. Due to the supply of the resource and the production demand, some industries begin to transfer. It's a process of time and space dimensions, an important factor influencing the division of industry and the way of regional industrial structure adjustment and upgrading. It's a government action when in china's 70th, some industries such as the defense-related mechanical departments, electrical and other heavy industry sectors shifted from the east coast southwest and northwest regions.In this essay, the migration happens in the marketing economy, the main body of the industry transfer is the enterprise itself. When the company chooses to transfer, it focuses on the interest, seeking development in order to achieve maximum benefits. Business cost means different fees, including the cost when business start-up and operates, the production-related expenses and so on. After summarizing the influential factors of location investment Decision involved in the Economies of Location, we define the connotation of business cost and divide it into two parts including factor cost and transaction cost.At present, in the decision of enterprises migration, business cost is the most important factor. So when discussing the reasons the enterprises migration, we should consider from the business cost.It needs migration when a business can better further the business development. In that way, company seeks for new profits. Therefore, understanding the relation between business cost and the reasons of enterprises' migration, on one hand, it helps the company conducts the scientific transfer decision. On the other hand, when well knowing the reasons, the government can make useful decisions.From the micro-enterprise, the article discusses the reasons of enterprises migration. Firstly, the textile analyses the factors of business cost, then summarizes the type of enterprises' migration. In that way, the essay builds the model of business cost and its migration. In the third part, using the data to certify the model. Then, according to the research, the essay proposes the recommendations.