Chapter 21: The Global Economy
"I'd Like to Buy the World a Coke"
Students have learned about the way multinational companies
function in the worldwide economy. In this exercise, students
will examine the annual report of a multinational, the Coca-Cola
Company, to learn how a multinational company can affect local
Students will use information from the Coca-Cola Web site
to learn how multinational companies operate. Students will
learn that the company is divided into regions, that economic
and environmental factors worldwide can affect business growth,
and how the company attempts to solve negative issues. Students
will also read about the positive impact that Coca-Cola's
presence has had on developing countries. Students will then
answer four questions and apply this information by creating
a chart of the benefits, opportunity costs, and economic risks
of the company's investments in developing nations.
multinationals: firms that do business and have offices
or factories in many countries
opportunity costs: cost of the next best alternative
use of money, time, or resources when one choice is made rather
Content Standards (from the National Council on Economic Education)
Standard 15: Investment in factories, machinery, new
technology, and the health, education, and training of people
can raise future standards of living.
1. Students will to able to identify the characteristics of
a multinational company and determine that its investments,
in both physical and human capital, research and development,
and technology are necessary for growth.
2. Students will be able to use this knowledge to create a
chart listing the benefits, opportunity costs, and economic
risks of Coca-Cola's investments in developing countries.
Web Activity Answers
1. The Coca-Cola Company's operations are divided into the
following regions: North America, Latin America, Europe, Eurasia & Middle East, Asia, and Africa.
2. Teacher may prepare an answer sheet from the most recent
3. Teacher may prepare an answer sheet from the most recent
4. Coca-Cola's presence in countries experiencing economic
or political turmoil or natural disasters provides needed
jobs for the people of those countries. Through its bottling
companies, which are mostly owned by independent business
people, and its sales force, Coca-Cola employs hundreds of
thousands of people. In Africa, Coca-Cola provides business
training and development programs to assist thousands of employees
within its system develop their skills. In addition, it has
made a commitment to invest $1 billion in bottling plants,
cold drink equipment, and talent development over the next
few years. This investment will enhance economic development
5. Students' charts will vary.
Go To Student Web Activity