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Economic Variables For Fedex

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Expanding globally is a major decision that requires a lot of a company. Before deciding to expand into a global market, the management team should first ensure that the company is ready for the move. It is very important that the company has the financial managers to identify and review the economic variables that are associated with the targeted company. Economic variables are used by many analyses to help identify the health and strength of a selected country’s economy. In this assignment, I will discuss the important economic variables that financial managers of FedEx Corporation need to identify before expanding in Canada. The economic variables that I will be discussing are inflation rate, interest rate, consumer price index (CPI), unemployment rate, and exchange rate. The first economic indicator that I will be discuss is the inflation rate. The rate that price of products and services steadily increases is the inflation rate. The reason that the financial managers of FedEx should be aware of the inflation rate of Canada is the fact that higher inflation rates has an impact on the buying power of the consumers. As the prices of products are increased due to inflation, consumers may become more reluctant to spend their money. Also, the company may become victim of the inflation rate directly. FedEx may see an increase in expenses if they company decides to purchase products locally and in utility bills. The second economic variable that I will be discuss is the
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