Assignment:
Many U.S. companies have become global players. The technology giant IBM employs over 375,000 people and has revenues of roughly $95 billion. Although IBM’s headquarters is in Armonk, New York, the vast majority of its employees (more than 70 percent) actually work outside the United States. IBM, like many other U.S.-based multinationals, now earns the majority of its revenues (roughly two-thirds) outside the United States.87 Though IBM revenues have been dropping in recent quarters, its global business is still a major focus for the firm.
Q1. Given that traditional U.S. firms such as IBM have over 70 percent of their employees outside the United States and earn almost two-thirds of their revenues from outside the country, what is an appropriate definition of a “U.S. firm”?
Q2. Should IKEA be considered a Swedish firm with less than 6 percent of sales garnered from the Swedish market? Discuss why or why not in your groups.
Q3. Is there any special consideration a firm should have for its “home country”? Is it ethical to keep profits outside the home country in offshore accounts to avoid paying domestic corporate taxes?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.