Putting The International In Ibm Essay

1564 WordsDec 27, 20117 Pages
Putting the International in International Business Machines Claude Younger Columbia Southern University December 18, 2011 Company Overview International Business Machines (IBM) turned 100 in 2010, has worldwide USD revenues of $100 billion, over $100 billion in assets and net income of $14.8 billion. In 2010 there were 426,751 employees’ worldwide but IBM stopped providing U.S. employee numbers in 2008. In 2009, during congressional hearings, IBM officials testified that there were 105,000 U.S. employees and its 2009 annual report claimed 386,000 total which means 25% were U.S. (Thibodeau, 2009) (Thibodeau E. , 2010) (IBM, 2011) IBM operates in 170 of the 196 countries in the world and 60% of their revenues are non-U.S. Their fastest growing markets are Brazil, China, India and Russia. (IBM, 2011) (Rosenburg, 2011) Market and Legal Systems By operating in 87% of the countries of our world they encounter all types of market and legal systems. IBM supports the World Trade Organization’s Doha Round services negotiations in hopes that these and other multi-lateral trade agreements will allow faster and more efficient international growth. The alternative is Free Trade Agreements with individual countries. (IBM, 2011) When the economics, laws, politics or culture dictate it, IBM sets up a wholly-owned subsidiary. This is the case with IBM Thailand where I spent the bulk of my international time. Business rules favor companies who will incorporate as Thai entities with Thai board members and executives. There is relief from double taxation and incentives from the Thailand Board of Investment. (Healy Consultants, 2011) Thailand is a Constitutional Monarchy with the same government branches as the U.S.; Executive, Legislative and Judicial, with some differences. The world’s longest reigning monarch (65 ½ years), His Majesty King Bhumibol Adulyadej, is

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