Meaning and Purpose of
Enterprises’ International Credit Rating and Promotion
5.Enterprises’ International Credit Construction Is the Primary Condition for Enterprises to Participate in International Competition
Globalization of world economy is the general development trend of the modern world economy, which has been widely accepted by the whole world. It means the globalization trend of each country’s economy in the sector of production, collocation, consumption, etc, and it is the worldwide transferring activity of throughput inventory.
Globalization of world economy began after the Second World War. Each country’s post-war economy resuscitated and developed very quickly. In order to meet the demand of rapid development, western countries actively organized and set up various international organizations. The significant examples were the establishment and development of groups such as “Organization for Economic Cooperation & Development”, “European Economic Community”, “European Free Trade Association”, etc.. Since the mid-80s of the last century, with the promotion of liberation policies, globalization process of world economy further ran up and developed rapidly. West Europe, North America and Asia- Pacific areas all gained substantial development. Activities in trade, investment and finance among countries became more internationalized. Globalization of production activity, global share of production information, global collocation of production factors, and global flow of production capital formed the main features of the development of world economy.
The fundamental motive that promotes globalization of world economy is the development of productivity and improvement of consumption capability. In 1990s, modern technological revolution, at a deeper level, promoted world economy to develop toward globalization. International trade and international finance formed two major sources of promoting globalization of world economy. Somebody also proposed the 3rd source--------the development of multinational corporations. They hold the view that after tens of years of international management, multinational corporations more and more presented the features of production internationalization, management pluralism, transaction interiorization, and decision globalization. Multinational corporations that are engaged in international production, sales and management have been gradually forming the main bodies of the structure of world economy.
As to the causes of globalization of world economy, although scholars in each country hold different views, globalization is a common idea that is recognized by all of them. Globalization mainly finds its impression in the following areas:
(1) Production and management cross over national boundaries and regions, especially large corporations carry out optimum resource collocation and production factor combination in the whole world.
(2) World financial market expanded sharply, and the combination degree of global foreign exchange deals is higher and higher.
(3) Numerous developing countries more and more participate in the development and competition of world economy.
(4) Completion of Uruguay Round of Negotiations and establishment of World Trade Organization enabled globalized market to be formed gradually and world trade to develop rapidly.
(5) Enterprises’ internationalized degree is higher and higher.
Globalization of world economy and development of multinational corporations promoted vigorous development of productivity and realized resources’ optimization configuration. However, along with that, trade disputes, financial crisis, drug selling, smugglings, illegal immigrants and environmental pollution also happened frequently. Solutions to these problems required the establishment of good global trade order, financial order, capital circulation order and international society order, as well as good international credit to support the development of globalization of world economy. Especially when globalization of world economy makes economic interest of people in each country the common interest of human beings, although exchanges between different peoples and cultures will influence and permeate into each other, the languages, psychologies, and cultural differences between different peoples caused by regions and history cannot be changed. Therefore, cultures must combine and coordinate with each other to enable the cultures of rich national colors to be recognized, accepted and tolerated by different peoples and finally become the common wealth of human beings. This requires different peoples and cultures to understand and tolerate each other. The kind of understanding and tolerance also need to be established on mutual trust (credit).
Amongst the general background of economic globalization, enterprises must blend with globalized economy and participate in international competition if they want existence and development. Enterprises’ international credit is the primary condition to participate in international competition and the premise of realizing international exchanges and cooperation. The most fundamental purpose of enterprises’ international credit rating and promotion is to solve the major problems of enterprises----------existence and development.
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