International
Report names 50 Cities as Hubs of the New Worldwide Economy; London holds Top Spot, Four of Top 10 are in the Asia Pacific Region
By Finfacts Team
Jun 12, 2007, 12:31

"The trend of commerce becoming more knowledge-driven and less tangible has actually elevated the role of today’s cities, positioning them as the hubs of complex circuits that fuel the globalized economy and provide connections through which true global commerce takes place," said Dr. Yuwa Hedrick-Wong, Economic Advisor, MasterCard Worldwide. "This more-research provides valuable insight into the cities that sit at the center of global commerce as well as the factors that are fueling commerce in each."

• London: The world’s leading Center of Commerce. With a flexible operating environment for business, strong global financial connections and exceptionally high levels of international trade, travel and conferences, London secures the top spot in the Centers of Commerce Index. The city outperforms New York in four of the six measurement dimensions, and scores significantly higher than other European cities.

• National economic factors, market regulations place New York behind London. Once considered the unchallenged financial capital of the world, New York cedes the Financial Flow category to London primarily because bond market regulations in New York affect the volume of listed sales. New York’s score is also impacted by the less stable US economy and the more volatile US dollar.

• Finance and innovation make Chicago number two in US. The fourth-ranked center of commerce globally, topping cities such as Hong Kong and Los Angeles, Chicago’s commodities and financial markets help it rank high in financial flow, while its world-class institutions of higher education lead to high marks on innovation and knowledge creation.

• The easiest places in the world for doing business: Montreal, Toronto and Vancouver. A strong national health care system, excellent infrastructure, low traffic and easy access to public transportation helped make Montreal, Toronto and Vancouver the three cities most attractive for doing business.

• Europe’s entry point for South American business, Madrid, emerges as a financial leader. Madrid ranks number 16 globally and sixth in Europe, driven largely by an exceptionally strong bond market, low inflation and low level of GDP and exchange rate variance.

• Economic divide between Eastern and Western Europe remains. The lowest ranking Western European city on the list, Rome, scores nearly equal to Budapest, the highest ranking Eastern European city, a gap that persists within all six dimensions.

• Tokyo’s powerhouse economy leads to top ranking in Asia Pacific. Tokyo, the leader in its region and number three overall, boasts the Nikkei 225, the world’s leading rate of patent creation , and an air traffic hub second only to Hong Kong.

• Three one-time "Asian Tigers" make the top ten. Hong Kong, Singapore and Seoul all rank among the top 10 Centers of Commerce, with Seoul’s higher education system and patent output helping it lead the pack in Knowledge Creation. Hong Kong and Singapore boast top rankings in Financial Flow and Business Dimension, showing the strength of their business climate and their prominence in the global financial network. Singapore also rates high for government policies that favor international business and trade.

• Strong business climate makes Dubai the Middle East leader. The region’s air and cargo traffic hub, Dubai, also claims a flexible business climate that makes it optimal for growing companies.

• Latin America is increasingly becoming more global and competitive. Three cities from Latin America placing among the world’s top 50 Worldwide Centers of Commerce is a strong statement of how the region continues to elevate its role in the global economy.