Decision Factors Influencing MNEs Regional Headquarters Location Selection Strategies

ECCO, a leading Danish manufacturer and retailer of footwear decided in 2004 to establish their Asia-Pacific headquarters (HQ) in Hong Kong for retail, sales, sourcing, distribution and general management functions. The German company, Atotech, has established RHQs in Rock Hill, South Carolina, USA, and Yokohama, Japan. Corning from the United States has a RHQ and its shared centre for financial transactions in Shanghai and there are a number of other examples of establishment and relocation of RHQs. A report from UNCTAD (2003) suggested a “world market for corporate headquarter operations” is emerging and provided many recent examples of relocations of HQ operations. In fact, UNCTAD (2003) counted 829 establishments or relocations of HQ operations worldwide between January 2002 and March 2003, which clearly indicate that the relocation of HQ operations is on the rise, and as such it merits careful academic consideration.

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