Benefits and Drawbacks of Moving HQ - Case Study Example

The movement of a company to a place with lower taxation regulations allows it to capitalize on the legislations present and attain as much investment and revenue from its activities. This provides it with a better way of looking at things and provides new opportunities that will boost its future investments (Lamb, 2012). Political motivation could also be a boost as it works on strengthening commitment to that country and providing more strength to its corporation. It will build good repute with the new economic aspects present to provide better commitment. It also positions the company as a global player and provides different investors with investment opportunities (Bischoff-Turner, 2008).

The most important goal is to provide new avenues that will boost a country’s position in terms of employment opportunities. Relocations will see a loss of revenue, loss of jobs and more doubts about the country’s potential to sustain economic growth and development (Bischoff-Turner, 2008). High-quality service provisions may lack in the new area, and that could influence the company negatively as it seeks to attract new clients and provide them with quality services. It is always important to look into the impact this will have on its service provision (Lamb, 2012).

Moving an HQ

The movement of an HQ from one country or city to the next will depend on the benefits noted in that particular area. The problem with this is the inability to generate the required amount to sustain the business in the new area and the lack of stringent measures to pursue a competitive edge in the new area (Lamb, 2012). If these were sorted out, it would be good to move. The company will also move if the intended gains are both in terms of revenue and investor visibility. If the gains are more to the company and shareholder investments, the movement will be ideal, and the HQ will be relocated (Bischoff-Turner, 2008).

Discouraging MNE movement

Setting the right policy mechanisms will be a great maneuver since bad legislations lead to poor investments and average revenue gains. As such, working towards this will provide a new way of looking at things, and this will only work if the companies can withstand the changing global trade rules (Lamb, 2012). As a country, setting the right pace for more companies to set shop in the country is imperative.