Procurement Offices (IPOs)
At present, Hong Kong and Singapore are the two most popular locations in Asia
for MNCs to set up regional headquarters and mate rial purchasing centres for their
regional operations.
An OHQ and an IPO must be able to provide a wide range of headquarters related
services to its subsidiaries over the region. These include some or all of the following
services: business planning and coordination, sourcing of raw materials and components,
research and development, technical support, financing, marketing, sales promoting,
regional training and personnel management, and fund and risk management. In this
connection, the effects of these establishments on the headquarters (ie. the recipient)
country will be significant. Activities of the OHQS and IPOS will create extensive
linkages for the services sector of the recipient country, and thus speed up overall
growth and development. In addition, activities of the OHQS and IPOs will generate
tremendous pressure on the government of the recipient country to upgrade its physical
and institutional infrastructure and its education and housing provisions. This is exactly
what the Hong Kong and Singapore governments have been doing so as to maintain
their status as comprehensive business centres and as regional hubs for multinational
activities.
C.
Exporters of Services
In the world today, services like goods have to be designed, developed and delivered.
Global trade in services is expanding very rapidly. As economic diversification is crucial
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