That striking figure comes from a new report on global businesses by management consulting firm McKinsey & Company.
“Large companies” are considered those that generate more than $US1 billion a year in revenue. In 2010, just 20 cities played host to the more than one-third of companies of that size that, combined, are responsible for a massive 47% of global revenue.
Tokyo far outranks all other cities worldwide, hosting the global headquarters of 613 large companies, which produce a whopping $US5.2 trillion of total revenue. New York ranks second, with 217 major company headquarters, followed by London, Osaka, and Paris.
The distribution of large companies is also starkly divided between developed and emerging regions. As the chart above shows, only five of the top 25 cities with the most large company headquarters are located in emerging countries, and Beijing and Moscow are the only two that break into the top 10.
McKinsey expects the number of large companies based in emerging regions to triple by 2025. This “geographic rebalancing will have wide-ranging implications for prosperity and growth in emerging economies,” according to the report, “and it will shift more of the world’s decision making, capital, standard setting, and innovation to emerging markets.”
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