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Empirical Research on Internationalization of Chinese Manufacturing Enterprises and Business Performance ZHU Qin Zhejiang Gongshang University, P.R.China, 310000 Zhuqin9871@163.COM Abstract: Based on 383 samples of China's manufacturing listed companies, through multiple linear regression analysis, this article shows that there is a significant positive correlation between the level of internationalization and business performance. While the size of the firm, the balance sheet and the characteristics of the industry have a significant effect on the internationalization to enhance the role of business performance. On the basis of empirical research, this article puts forward countermeasures and proposals to promote the internationalization of Chinese enterprises to enhance business performance. Keywords: Internationalization, Manufacturing enterprises, Business performance

1 Introduction
In the context of economic globalization, China's manufacturing enterprises are facing the global competition. It is an inevitable trend and an option of certain development stage for Chinese enterprises to go globalization. Whether the international operations can result in obvious performance becomes a concerned topic to scholars generally. For this problem, some scholars believe that the international operations can improve business performance, risk diversification; some scholars’ studies have shown that the internationalization strategy will not improve corporate performance. But a growing number of studies have shown that, compared with the domestic operations, international operations can improve business performance. So how is the relation between international operations and the performance of Chinese manufacturing enterprises? This article takes 383 China's manufacturing listed companies as samples to study the relationship between the degree of international operation of enterprises and business performance, puts forward countermeasures and proposals on promoting the globalization of Chinese enterprises and enhancing their business performance.

2 Literature Review
In recent years, studies on how international operations of enterprises affect their performance have received extensive attention (Winfried and Hardy, 2003). Gomes L, Ramaswamy K (1999) thinks that the initial stages of the internationalization of business performance has a positive impact, but with the in-depth of internationalization, it has gradually diminishing marginal returns as to the impact on the performance, which means there is an inverted J shaped relation between the internationalization and management performance. Riahi-Belkaoui (1998) thinks that there is an S-relation between the internationalization and management performance. During the international initial period, with the incremental internationalization, enterprise performance declines and geographic diversification increases. There is a positive relationship between International operations and business performance, and then at a very high degree of internationalization, with the increasing degree of internationalization, business performance decreases. The study of Hoskisson and Ireland (1994) shows that: At the beginning of the internationalization, it has the positive impact on business performance. With the in-depth of the internationalization, multinational operating costs have continued to increase. Its impact gradually reduces, at last to a negative, namely, internationalization result in an inverted U-effect on business performance. Winfried Ruigrok (2001) points out that the multinational companies begin the process of internationalization with high levels of financial performance, then, the company's profit


declines. Then the trend of profit growth has reversed from down to rapid growth, showing U-relationship. After comparing the performance of multinational companies in Hong Kong with that of local enterprises, Wan (1998) finds out that there is no difference between...
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