In Shanghai Regional Headquarters Of Multinational Status Quo And Its Economic Effects

Since the reform and opening up of China, the persistently rapid development of China's economy has attracted more and more transnational corporations (TNCs) entering China for investing. Along with the increase of their investment spots and the expansion of their investment scopes, many TNCs feel it necessary to establish regional headquarters (RHQs) for managing their investment in China better (sometimes involved investment contains a larger scope), and making the enterprise network operate successfully. Because of its role as China's economic centre, and the strong support from the entire Yangtze River Delta, Shanghai has been at the head of China's great cities in tempting TNCs to set up RHQs.This paper contains six chapters. Chapter One is the "introduction", which includes research background, research purpose, research framework and the innovation. Chapter Two is the literature review, which has reviewed and tidied up the academic research on TNCs, foreign direct investment (FDI), RHQs and headquarters economy. Chapter Three is analysis of the current situation of Shanghai on drawing RHQs of TNCs, also several characters of RHQs in Shanghai are analyzed and the differences among Shanghai, Beijing, Hongkong and Singapore at the aspect of attracting RHQs compared. Chapter Four is the demonstration part, in this chapter, hypotheses aiming at four kinds of RHQs' economic effects are presented and demonstrated based on Shanghai's data. In Chapter Five, the competition which Shanghai faces in attracting RHQs is analyzed and some advices given. Chapter Six is the final conclusion.This paper has two aspects of innovation. One is the various character analyses of RHQs in Shanghai based on their individual information; the other is the empirical analysis of RHQs' economic effects according to data at city level.