.... with things like hedge funds and what not will often setup shop in countries with less strict security laws than the US in order to avoid legal and accounting overhead as well as to be able to provide products that would be illegal or cost prohibitive in the US. US investors are often barred from these instruments. Some companies will form offshore corporations in order to invest in them. Bottom line: There a lot of reasons to have foreign subsidiaries beyond tax avoidance/tax optimization.

Did anyone bother to read the 10-Q Microsoft released today? Or any analysts viewpoints? Or is it more exciting to pull analysis out of your behind?