Economics Today and Tomorrow, Texas Edition
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Chapter 21: The Global Economy
"I'd Like to Buy the World a Coke"

Introduction
With operations in nearly 200 countries and hundreds of thousands of employees in their worldwide bottling system, the Coca-Cola Company is a prime example of a multinational company. Its Web site is full of information on how it manages operations in nations experiencing political instabilities, wars, and declining markets.

Destination Title: Coca-Cola Company Web site

Note: Clicking on the link above will launch a new browser window.
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Directions
Start at the Coca-Cola Company Web site.

  • Point to the "Investors" topic, highlight "Financials," and click on the latest "Annual Report" topic.
  • Click on the link for the latest annual report.
  • Open the "Operations Review" section.
  • Browse through the site, taking notes as you go.
Read through the information, and then answer the following questions.
1. Into what regions are the operations of the Coca-Cola Company divided?


2. What worldwide economic conditions are cited in the report as having a negative impact on sales?


3. How did Coca-Cola invest in those areas to alleviate those problems?


4.  In what ways has the presence of the company had a positive impact on the economy of developing countries?


5. Coca-Cola has grown to become a multinational corporation that has enhanced the lives of many around the world. But investments in physical and human capital entail opportunity costs and economic risks as well. Use your findings on recent Coca-Cola expenditures in developing nations to create a chart listing the benefits, opportunity costs, and economic risks of those investments.



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