Links for 23rd August 2009

Fresh from the clogged tubes of teh intarwubs…

  1. IBM and the New American Multinational

    "In the first six months of 2009, it earned nearly $6 billion in profits, even as the U.S. economy contracted sharply. This past quarter, about two thirds of its revenue came from outside the U.S., and that percentage is growing.

    Some of the effects are undoubtedly negative for the U.S. Thousands of IBM employees have recently been offered a choice between losing their jobs in America or moving abroad to stay employed. Companies that once were icons of American power—like IBM and General Motors—will thrive only if they become more wedded to the world and less to the U.S. GM itself is a perfect example of what works and what doesn't, with a U.S. division that failed and a Chinese division that is wildly successful. A world with more strong foreign markets means less money spent on labor and operations in the U.S., and more spent elsewhere. Companies like Intel and Microsoft are investing billions in R&D facilities in China because they believe that is where their future is."

    Tagged with: businessglobalisationeconomicsIBMoutsourcing

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