Coca Cola And The United States

1238 Words5 Pages
While trade policies are generally favorable, and are becoming more liberalized, there still exists trade restrictive measures, such as tariffs. The U.S. continues to have one of the lowest tariff rates on its imports, but Pakistan and India have some of the highest, averaging around 50% (World Trade Report 2014, 2015). To circumvent the tariffs, Coca-Cola bought or established operations in these countries so it could distribute its products domestically instead exporting to those countries and encountering the high tariff rates (Bozer, 2012). Coca-Cola also faces tariffs in France as of 2011. The French tariff, which is being labeled as a tax so as not to appear to be trade-restrictive, is a 1 euro per can tax on sugary sparkling…show more content…
recession and now China’s slowdown, the U.S. is having positive, although sluggish, growth. The existing easy monetary policy is meant to encourage domestic investment. This easy money policy has been in place since the 2008-2009 recession and is not sustainable long-term. The Federal Reserve has said that it will raise interest rates, and there is speculation this could happen in September 2015 or before the end of year (Cheng, 2015). It has also been speculated that the move will only be .0375 basis points, which means that the money supply is still very inexpensive (Barton, 2015). However, the move will signal an end to the easy money policy, which will likely cause ripples of volatility into other markets. While no date has been set when this will happen, it is very likely it will be in the very near future. Section IX As can be inferred from the previous sections, the current global climate is ideal for Coca-Cola to invest further in its foreign assets. There is definite volatility for the foreseeable future in the emerging markets, mostly due to China’s economic slowdown. Although the slowdown is a concern for all economies, especially those of its chief suppliers such as Mexico, Brazil, and Venezuela, to name a few, China is still growing at a pace faster than, for instance, the U.S. and is poised to be more economically powerful than any other emerging market. China appears to be encouraging foreign investment instead of discouraging it, which

More about Coca Cola And The United States

Open Document