Study On Multinational Company Regional Headquarters’ Local Choice in China and Enhance the Headquarters’ Economic Competitiveness

Peng Wu, Qiao Ming Li

Abstract: Nowadays, multinational companies is the dominant factor in international trade, it promoted the development of global economic integration. In the global economic and trade activities of the coordination, organization and decision-making activities, multinational company headquarters and various kinds of regional headquarters plays a decisive role. To determine whether an area's place in the global economic activity is an important symbol of the region headquarters of multinational companies as well as the subordinate regional headquarters. Company's own strategic needs is the first factor of multinational company location selection, and objectively and location of your country have a certain degree of economic strategy, thus to play a certain role in promoting its economic development. Influencing factors on site selection of multinational companies have a lot of, one of the most important factors include location the condition of fundamental facility that the environment, market environment, financial situation, population and so on. Multinational companies on many aspects of influence, location of countries not only have a profound impact to urban employment, economic aspect, also to the urban space division, relevant supporting services to improve and environmental regulation has a positive role in promoting. The economic characteristics of the Beijing and Shanghai are export-oriented. Beijing is the capital of China, while Shanghai is the most active economic mainland cities. Based on foreign experience and the characteristics of Beijing and Shanghai city itself, to attract more foreign companies to set up regional headquarters, thereby giving impetus to the development of regional economy, helping to achieve industrial upgrading, now become a problem to solve urgently. In this paper, using literature research and case study, mainly consists of five parts. The first part for the domestic and foreign research review, mainly introduces related concept, including the concept, the regional headquarters of multinational and connotation, types and characteristics, etc. The second part focuses on the theoretical research, mainly discussed the multinational company location selection theory; The third part is case analysis, firstly analysis the influence factors of location related, and then to Hong Kong as an example is analyzed; The fourth part is the analysis of the situation, mainly from the macro point of view clearly China in attracting foreign companies into the deficiencies, provide the basis for further improvement. The last part is the summary, through the case study of Beijing and Shanghai it attract foreign companies into the advantages and disadvantages, so as to indicate the direction for future development. By studying comprehensively analysis the influence factors of multinational company headquarters location and influence, summarizes the characteristics of multinational companies in detail and USES the case study the actual situation of Beijing and Shanghai are discussed in detail. Through the study of multinational companies collecting sums up the relevant location, the theoretical basis of the comprehensive analysis the influence factors of multinational company headquarters location and influence, coupled with China's environment analysis of factors affecting the development of multinational companies in China, finally in China selected as the typical case analysis and comparative analysis, from two aspects of vertical and horizontal comprehensive analysis of the multinational company's location factors. Keywords: Multinational company regional headquarters’ local choice. Title: Study On Multinational Company Regional Headquarters’ Local Choice in China and Enhance the Headquarters’ Economic Competitiveness Author: Peng Wu, Qiao Ming Li International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Research Publish Journals

Vol. 4, Issue 1, April 2016 – September 2016

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Study On Multinational Company Regional Headquarters’ Local Choice in China and Enhance the Headquarters’ Economic Competitiveness by Peng Wu, Qiao Ming Li