The establishment of German headquarters may be beneficial to companies wishing to increase their global standing. The high innovation capacity and entrepreneurial spirit are perfect reasons for foundation of German headquarters. The establishment of German headquarters is a great way to expand a company's market power, while increasing the firms size at the same time. Companies will wish to establish German headquarters once they realize what opportunities are provided by additional markets. In times of globalization, a great number of firms have decided to branch out, many of which have decided to establish German headquarters. German headquarters allow firms to benefit from foreign tax concessions and governmental support schemes. German headquarters are the source of increased income as companies gain access to a wide array of new markets and customers.