This paper discusses a radio outburst in the BL Lac-object 0735+178 which started in early 1988, ended during 1990 and was succeeded by a new outburst which is still in progress. Our image obtained with a global VLBI network shows the source to mainly consist of a core-jet like structure ending in diffuse emission region of low surface brightness located to the east of the core. We identify two new components as having been produced during the late 1980's. They are moving out with apparent superluminal motion in a viewing angle of greater-than-or-similar-to 10-degrees at a distance of less-than-or-similar-to 2 mas from the core. The core includes another new component, but our resolution is just sufficient to resolve out this component from the core at our epoch of observation. We suggest that the weak emission region is caused by an older component reaching the point at which the Doppler boosting is at its maximum and that the long time scale flux variation are due to successive events when evolved components reach that point.