IBM

Definition

IBM, or International Business Machines Corporation, is a global technology and consulting company that provides hardware, software, cloud-based services, and cognitive computing solutions. Founded in 1911, IBM has played a crucial role in the development of computer technology and has established itself as a leader in foreign direct investment through its extensive international operations and multinational presence.

5 Must Know Facts For Your Next Test

1. IBM is known for its significant investments in research and development, consistently ranking among the top companies for patents filed each year.
2. The company has a presence in over 170 countries, illustrating its extensive reach and influence as a multinational corporation.
3. IBM has transitioned from primarily selling hardware to focusing on software and cloud services, adapting to the changing technology landscape.
4. The company actively engages in foreign direct investment to expand its operations globally, often collaborating with local businesses to enhance market entry.
5. IBM's initiatives in artificial intelligence and blockchain technology have positioned it as a key player in innovative industries and sectors.

Review Questions

• How does IBM exemplify the characteristics of a multinational corporation through its global operations?
  • IBM exemplifies the characteristics of a multinational corporation by maintaining a vast network of operations across more than 170 countries. This extensive global presence allows IBM to leverage local markets while providing tailored solutions that meet specific regional needs. Additionally, IBM's commitment to foreign direct investment demonstrates its strategy of establishing local partnerships and adapting its services to align with diverse business environments worldwide.
• Analyze how IBM's transition from hardware to cloud computing impacts its strategy for foreign direct investment.
  • IBM's transition from hardware sales to cloud computing services has significantly influenced its strategy for foreign direct investment. By focusing on cloud solutions, IBM can tap into growing markets where digital transformation is a priority. This shift allows the company to invest in local data centers and partnerships that enhance its cloud offerings while ensuring compliance with regional regulations. Consequently, IBM's FDI strategy is closely aligned with its goal of becoming a leader in cloud-based services globally.
• Evaluate the role of innovation at IBM in shaping its position within the global economy and its impact on foreign direct investment strategies.
  • Innovation at IBM plays a pivotal role in shaping its position within the global economy by driving advancements in technologies such as artificial intelligence and blockchain. This commitment to innovation not only enhances IBM's competitive edge but also influences its foreign direct investment strategies. As the company develops cutting-edge solutions, it strategically invests in emerging markets where these technologies can be effectively deployed. Thus, IBM's focus on innovation fosters both economic growth for itself and opportunities for collaboration with local businesses worldwide.

Related terms

Multinational Corporation: A corporation that has facilities and other assets in at least one country other than its home country, operating on a global scale.

Foreign Direct Investment (FDI): An investment made by a company or individual in one country in business interests in another country, typically by establishing business operations or acquiring assets.

Cloud Computing: The delivery of computing services over the internet, including storage, processing, and software applications, enabling flexibility and scalability for businesses.