Research On The Location Choice Of MNC'S Regional Headquarters And Its Relationship With Regional Economy Development

Since China ranked one of the largest countries in attracting foreign investment and made great improvements in making investment in foreign countries over last couple of years, the influences and impacts of multinational companies (MNC) have become the issues that local government and academic circle should pay great attention to. And the selection of regional headquarter ranks top among those issues. First, under globalization of world economy and the development of knowledge economy, as an important part to MNCs'global strategy the location choice of their regional headquarter is undergoing great evolution. Most MNCs with their business in China are undergoing the process of re-choosing its regional headquarters. Second, although recently the separation of MNCs'regional headquarters and manufacturing bases has become very common, the research of this topic is relatively rare. Last but not least, the regional distribution of MNCs has assumed the trend of clustering. As a result, this has also brought forth a clustering effect on MNCs and the regions. Recognize the conditions of MNCs'location choice, creating a sound regional investment environment, attracting MNCs investment have great theoretic and practical meaning to enhance the competitive edge of the regional industry and regional economic growth.The research of this thesis is not only about MNCs'regional headquarters, but also about the evolutionary process of MNCs'location and its direct and indirect influences on domestic countries. Also above this analytical base, the thesis provides policy suggestions to the development of regional economy.The thesis is divided into four chapters. The first chapter introduces the theoretical background, research approach and meaning of the topic through expounding the situation, causes and operation pattern of MNCs'with business in China. The second chapter discusses the location choices of MNCs'regional headquarter in China. The third one introduces the phenomenon of clustering of MNCs'regional headquarters and discusses the interrelation of this clustering and the development of regional economy. On the one hand, the location choices of MNCs'regional headquarter is a result of MNCs'global strategy; on the other hand, this choice must have a profound influence on domestic countries. The forth one brings forth that government should create a sound investment environment to attract MNCs to set up their regional headquarters; at the same time, the chapter also provides relative suggestions on how to make use of MNCs'regional headquarters to develop regional economy.