Developing world lures corporations
Corporations will soon look beyond cities such as New York and London for headquarters. As developing nations mature economically, emerging cities will become more appealing as homes to global companies, McKinsey predicts in a new report, Urban World: The Shifting Global Business Landscape.
The consulting firm projects that in 2025, nearly 230 Fortune Global 500 companies will be based in emerging cities compared to only 24 in 2000.
Firms seeking to expand into international markets and tap low-cost, high-skilled labor will turn to cities such as Beijing, Istanbul and Sao Paulo, which could double or triple their corporate offices by 2025. Also fueling the trend: the growing number of companies sprouting in emerging nations.