Coca Cola in a Global Economy

Coca Cola in a Global Economy

In the year 1886 The Coca Cola Company was established in Atlanta, Georgia. Leading in distribution, manufacturing, and marketing the company is considered to be the world number one nonalcoholic beverages company. The company produces a broad range of beverages throughout the world. The Coca Cola Company has proven to be the number one soft drink in quenching consumer’s thirst of soft drinks from Afghanistan to St. Louis. The Food and Drug Administration is a global agency that monitors and verify the ingredients that are being used in manufacturing nonalcoholic products. The Coca Cola Company cautiously examine their ingredients to meet the requirements of the FDA before presenting it for approval.

There are many factors in the economic view of a company’s growth in other countries, including our own country. These factors include interest rate, inflation, standard of living, wages, exchange rate, unemployment rate and the overall economic growth of the country. These factors are different in each country that the business is operating in. The economic growth in each country gives an impression of high purchasing power. That is what most marketers use in penetrating the market. The Coca Cola Company uses this marketing tool for their products across the world, where the company uses about sixty three different types of currency. The fluctuation on the exchange rate is part of the decisions of exporting products worldwide. Which is important since the company generates seventy two percent of its operating profits outside of the United States. The other economic tool the Coca Cola Company uses is the imposed interest rate on borrowed money. The changes in interest rate affect the financial status of a company and further investments as it increase total cost.

Now with people’s cultures, traditions, health perception, population growth, and trends among the population;