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Multinational enterprises (MNE) are establishing regional headquarters in order to maximise synergies and economies of scale.
Significant cost savings can be achieved as a regional headquartered company providing a service can supply the group more cheaply than the
individual subsidiaries. Further benefits are to streamline the management of business lines, to enhance group control, to improve the efficiency of the supply chain, to reduce duplications within the MNE group and potentially to reduce their tax burden. Moreover, the certainty of continuous service supply adds value to MNEs.
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