Abstract:City value decides its business cost while city's business cost determines firms' production operations cost,and firms' production operations cost serves as a key factor of firm's decision in investing in this city or not.The fluctuation in city's business cost results from dynamic game between firm and city,and the estimation of city's business cost requires comparing with both coequal cities and firms' subjective judgment.The foundation of adjusting business cost is to ascertain this city's strategic orientation.