Question: 1. Think back to our discussion in Chapter 7 and in the current chapter regarding the labor cost difference between employing programmers in the United

1. Think back to our discussion in Chapter 7 and in the current chapter regarding the labor cost difference between employing programmers in the United States versus overseas in locations like India and Eastern Europe. Is IBM’s growth in employment in such countries inevitable given labor cost differences? How does this relate to Mr. Palmisano’s comments in Exhibit 1?
2. Is the IBM offer typical of that offered to expatriates?
3. What is your reaction to the critical comments made by the Alliance@IBM spokesman, including the comment about asking employees to “offshore their citizenship”?
4. Review Exhibit 16.9 earlier in this chapter—The Cost of Living, Domestic Purchasing Power, and Minutes of Working Time Required to Buy a Big Mac, Bread, and Rice? How do the numbers for Indian cities like Delhi and Mumbai compare to those for U.S. cities like Chicago, Los Angeles, and New York? What are the implications of such differences?
5. Exhibit 2 gives examples of people who seem to enjoy living and working in India and also reports the opinion of an academic that this sort of move will become much more common. Do you believe that is likely? Why or why not?

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