The Research Of International Diversification Of Chinese Enterprises Based On The Perspective Of The Location Of The Enterprises

In recent years,as the “Belt and Road” initiative initiated and promoted by China has achieved remarkable results,RMB internationalization has taken significant steps,China's open economy has been significantly improved,the structure of foreign trade and utilization of foreign capital has been optimized,and China's economy has become more closely connected with the world economy.The stable domestic and international economic development provides a good business environment for local enterprises to carry out international diversification,which has led more and more Chinese enterprises to realize the necessity and importance of opening up the international market and adjust their development strategies for international diversification.Therefore,based on the external perspective of the location of the enterprise,this paper takes the international diversification of Shanghai and Shenzhen A-shares from 2008-2016 and it's paired listed companies as a sample to discuss the administrative level of the city where the enterprise is in China's political and economic environment.The degree of openness affects the micro-international business operations of enterprises,and further empirically tests the relationship between urban administrative level,urban openness and international diversification of enterprises.This not only enriches the research on the international diversification of enterprises,but also plays an important reference for the relevant government departments to formulate relevant laws and policies.At the same time,the experience of other countries with better international diversification and development will help enterprise managers to adjust their business strategies,which will help improve the international competitiveness of enterprises and promote the sustainable development of enterprises.Through theoretical analysis and empirical test,this paper draws the following conclusions:(1)This paper first analyzes the impact of urban administrative level on the international diversification of enterprises.On the one hand,in theory,administrative factors play an important role in China's economic and social development.The higher the level of urban administration,the resources it can possess and control in politics,economy,technology and talent.The quantity and quality are superior,which will also play an important role in promoting the development of enterprises within the jurisdiction.On the other hand,the empirical test shows that there is a significant positive correlation between urban administrative level and international pluralism,that is,the higher the administrative level of the city,the higher the probability that the enterprises in the jurisdiction will conduct international diversification.(2)Secondly,among the external factors that affect enterprises' international diversification,urban openness has become an important factor affecting the external business environment,internal and external costs and the international business ideas and strategies of the enterprise.Therefore,this paper empirically tests The relationship between urban openness and international diversification reveals that there is also a significant positive correlation between the two,that is,the higher the degree of openness of the city,the higher the probability of international diversification of the enterprise.