STRATEGIC LOSSES?

INTERNATIONAL BUSINESS MACHINES CORP.'S personal-computer division plans to expand manufacturing operations in Mexico and Brazil, while analysts question whether the U.S. technology firm should be in the computer-making business at all. Even CEO Lou Gerstner is looking for new ways for his company to approach the PC market.

Miguel de Lascurain, IBM's PC vice president for Latin America, says that the company is looking to manufacture more products in the region, starting with laptops and more servers in Brazil. The Guadalajara, Mexico, plant produces the majority of the