Fortune Magazine published an article providing the World\'s 250 Corporations by
ID: 434727 • Letter: F
Question
Fortune Magazine published an article providing the World's 250 Corporations by head office city which was covered by Prof. Jean-Paul Rodrigue from Hofstra University.
While it has long been established that the most important global cities are those that foster economic, political, and cultural contributions across the world - could it be that the attractions of multinational corporations are the most important component in the growth and survival of global cities? Support or oppose this theory.
Expectations: All posts must be 200 words in length at minimum. Please think about the questioncarefully and do your best to post a thought-provoking response. Please also be careful to edit for spelling and grammar. If referencing language from a work that is not your own, please be sure to include the appropriate citations.
Reading is as below:
World’s 250 Largest Corporations by Head Office City
The presence of head offices of multinational corporations is indicative of the economic importance of locations and their primacy in the global urban system. A head office are only one component of the activity scale of a multinational corporation and usually depicts little about its level of involvement across the world. The above map illustrates the market value of the 250 largest corporations compiled by the city housing their head office and a classification of the countries according to their human development index (HDI). The following elements are characteristic of the spatial structure of these corporations:
The head offices are dominantly located in North America and Western Europe; 173 head offices out of the 250 largest (69.2%) or 69.7% of the market value. Additionally, there is a high concentration of head offices in countries have a high human development index (above 0.8); 194 head offices out of 250 (77.6%) or 76.5% of the market value.
Six cities alone account for 68 head offices or 29.2% of the market value; New York, London, Paris, Tokyo, Beijing and Moscow. Unsurprisingly, they account for the more prominent global cities.
Several countries have a very high level of concentration of head offices in their capital cities. Beijing, London, Paris, Tokyo and Moscow are almost the sole location of head offices in their respective countries.
The United States and Germany to a lesser extent have a good diffusion of head offices across their territory, illustrative of a regionally diversified resource, manufacturing and financial base.
Human Development Index (2010) More than 0.8 0.7 to 0.8 0.5 to 0.7 0.4 to 0.5 Less than 0.4 or NA (? Market Value (2012, SM) London Laudai oLess than 70k O 70k to 140k 140k to 300k 00k to 700k More than 700kExplanation / Answer
As many of the countries have an Operating structure of promoting their businesses by conduct in the business from the main city availability of the operation as well as provision of different kind of services in enhancing revenue generated by the cities have been very badly effective in maintaining high standard for being a main contributor for being the most important part of any country.
These service provisions and providing extensive abilities of business communication have developed centralised business operation for the countries.
These cities are Highly Effective in terms of creating a better environment and economic conditions for these organisations as availability of free trade operations and better tax availability as well as clear provision of all the limitations of economic conditions provide and make them better places to do business and to maintain the headquarters in the Pacific cities. These cities are also responsible for being business Capitals of the specific countries which directly affects the overall economic revenue generation and helps the different countries to maintain high quality standard in Operation by providing adequate services to different businesses for hosting their headquarters in the specific regions.
Changing political conditions have less effect on this specific business capitals as the overall approach of the business and maintenance of the headquarters for different company is based on foreign relations rather than being affected by the political aspect of the specific region.
As understanding of different cultures is it necessary for a company to operate internationally, having a headquarter in the financial capital of the countries and having headquarters in major cities definitely provide better understanding of overall culture of the country which improves its availability for the business in the international as well as the local market. This type of approach is very helpful in determining the best available position for the company by maintaining better diversity and implementation of cultural advantage in its operation.
All in all we can see that most of the companies based their headquarter on Prime cities of the country as this type of approach provides a positive impact on the overall available factors for improving the revenue generation as well as for better efficiency of the organisation.