LONDON AS A CENTER OF ATTRACTION FOR FOREIGN TRANSNATIONAL CORPORATIONS

Abstract

The assessment of the role of large cities as hubs of foreign TNCs is of particular importance in economic geography in the context of the formation of global business network structures. Based on the Forbes Global 2000 rating data, the range of presence of the world’s largest foreign TNCs’ affiliates in the London agglomeration, their industrial and geographic structure, and the pattern of location were assessed. As a result of the analysis, the historical stages of the formation of foreign corporate segment of the city’s economy were identified. London is highly attractive for foreign corporations, in their numbers it competes equally with New York and the world’s “gateway cities”. The maximum number of foreign TNCs’ affiliates was recorded in the sphere of financial and professional services, and, to a lesser extent, in mechanical engineering, chemical and mining industries. A relatively narrow geography of corporate links is revealed with a clear dominance of US companies. A pronounced “centric” model of foreign TNCs’ affiliates’ location is argued with two key clusters - in the City and Westminster areas.