maintains that for effectively managing their global empire

maintains that for effectively managing their global empire, MNEs prefer to locate their RHQ in large nodal cities and service hubs where global reach, the ?ow of instruction, ideas and data to regional of?ces, branch plants, af?liates and subsidiaries can be more ef?ciently coordinated and controlled. Therefore, MNEs prefer to move to and stay in locations with the characteristics of (1) strategic positioning with suf?cient transport and communication infrastructure; (2) high quality external services with a particular type of labour market, especially people skilled in information processing; (3) rich in social and cultural am Regional headquarter constitutes an intermediate level in the corporate organizational structure, having a geographical sphere of in?uence encompassing several countries and cities and good institutional social factors including people’s. Their primary responsibility is to integrate the parent company’s activities within a region, that is, to coordinate and control the activities of the ?rm’s af?liates (manufacturing unites, sales of?ces, etc.) and to act as the intermediary between the corporate headquarters and its af?liates within its particular region.