Should Top Management Relocate Across National Borders?

In today’s increasingly international world, it’s not uncommon for multinational companies to move some element of their headquarters to another country. Here’s how to evaluate the strategic costs and benefits of such decisions.

International relocations of entire corporate headquarters are a rare phenomenon. But the relocation of elements of headquarters — such as the offices of top management team members, core functions like finance, R&D or shared services — is happening more and more, triggered by the increasing internationalization of markets and industries. But when is it smart for multinational companies to relocate top management to other countries? This article explores that question.

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Acknowledgments

The authors thank George S. Yip, Koen H. Heimeriks and Patrick Reinmoeller for their valuable feedback on this article.

1 Comment On: Should Top Management Relocate Across National Borders?

  • michaelqazqaz | December 27, 2011

    I’m surprised the tax benefits of relocating the entrepreneurial aspects of businesses from high tax rate to low tax rate locations was not covered in this article.

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