Blogpost 2: Coca-Cola Company Billie Shattuck Regent University ECON 230 (02): Macroeconomics Dr. Jeff Bajah April 22, 2022 Blogpost 2: Coca-Cola Company The Policy of the Federal Reserve Bank Affects the Coca-Cola Company’s Economical Growth As our text explains, “one of the Federal Reserver’s most powerful tools is not its influence over the money supply but its influence over expectations, namely its ability to boost market confidence” (Cowen & Tabarrok, 2021, p. 761). Additionally, “monetary policy can influence aggregate demand, or target credit markets at the aggregate level, but cannot push the demand down for one market segment, and keep the demand for everything else up” (Cowen et al., 2021, p. 767). According to Carré & Le Maux (2020), The twofold evolution of the international monetary and global financial system created both a supply of (due to the internationalization of the dollar) and demand for (due to financial globalization) liquidity from the global lender of last resort when the dollar funding markets collapsed. (p. 4) The Policy of the Central Bank’s Effect on the Key Market and the Coca-Cola Company’s Economical Growth According to Coca-Cola (2022), “during the three months and year ended December 31, 2021, the company recorded an impairment charge of $78 million related to a trademark in Europe, driven by a change attempting to renew the license agreement for a certain brand” (p. 18). According to Clark (2015), “rules regarding monetary policy have come to dominate central bank decision-making, and their management of market expectations as regards longer-term intentions” (p. 4). Furthermore, “quantitative easing and negative real interest rates made a significant difference to the prospects of the US and global economies” (Clark, 2015, p. 2). Effect of Fiscal Policies of the Home Country and Its Key Market on the Company According to our text, “fiscal policy is likely to be needed and most effective when the economy needs a short-run boost, even at the expense of the long-run or the problem is a deficiency in aggregate demand rather than a real shock” (Cowen et al., 2021, p. 819). However, “a real shock that reduces capital and labor productivity, shifts the long-run aggregate supply curve, reduces productivity, increases aggregate demand, and increases the growth rate, but the inflation rate is much higher” (Cowen et al., 2021, p. 815). According to Clark (2015), “the actions, statements of intent, and market expectations as regards the possible policies of the ECB, the Fed, the Bank of England’s (BoE) Monetary Policy Committee (MPC), and other national central banks have assumed a level of importance” (p. 2). References Carré, E., & Le Maux, L. (2020). The Federal Reserve’s dollar swap lines and the European Central Bank during the global financial crisis of 2007–09. Cambridge Journal of Economics, 44(4), 723-747. https://doi.org/10.1093/cje/beaa015 Clark, G. L. (2015). The geography of the European Central Bank: form, functions, and legitimacy. Journal of Economic Geography, 15(5), 855-881. https://doi.org/10.1093/jeg/lbv015 Coca-Cola (2022). Investor Relations, 2021 Q4 Earnings Release. Retrieved April 22, 2022 from https://d1io3yog0oux5.cloudfront.net/_234b07a3d140bc6ac2699fc70603d966/cocacolacompany/news/2022-02-10_Coca_Cola_Reports_Fourth_Quarter_and_Full_Year_1046.pdf Cowen, T. & Tabarrok, A. (2021). Modern Principles of Economics, 5th ed. Worth Publishers, One New York Plaza, New York, NY. ISBN 978-1-319-32946-4 (epub).

Blog 1: Milestone 1 Billie Shattuck Regent University ECON 230 (02): Macroeconomics Dr. Jeff Bahah March 25, 2022 Blog 1: Milestone 1 Company Overview The Coca-Cola Company, NYSE: KO (2022), is a total beverage company with products sold in more than 200 countries and territories with brands consisting of Coca-Cola, Sprite, Fanta, and other sparkling soft drinks, hydration, sports, coffee, and tea brands include Dasani, SmartWater, Vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Honest, Ayataka, and BodyArmor. (Coca-Cola, 2022, About the Coca-Cola Company, para. 1) The Comparative Advantage Over its Rivals As a total beverage company, Coca-Cola is “present in almost every beverage category having approximately 200 master brands, over 700,000 people in their system help deliver those brands to customers every day” (Coca-Cola, 2022, Strategy/Overview/ Purpose, para. 2). As Proverbs 16:26 states, “a worker’s appetite works for him, for his hunger urges him on” (New American Standard Bible, 1995). Additionally, “Digital is beginning to play an integral role in their RGM strategy, providing competitive advantages” (Coca-Cola, 2022, Growth Strategy/Revenue Growth Management, para. 3). The rivals include “PepsiCo, Quaker Oats, Gatorade, Aquafina, and Frito Lay, with Frito Lay commanding 60% of the US snack food markets with its broad range of chips, and acquisition of food companies in Europe and China” (The Great PepsiCo Fightback: Why Fizz No Longer Matters, 2007, p. 17). The Supply and Demand For Coca-Cola’s Key Product or Service According to Coca-Cola (2022), “for both the quarter and the year, growth in developing and emerging markets was led by China, India, and Russia, while growth in developed markets led by the United States, Mexico, and the United Kingdom” (Earnings Release, p. 4). From Coca-Cola’s Income Statement provided, Net Operating Revenues from December 31, 2020, were $33,014 (USD in millions) and $38,655 (USD in millions) on December 31, 2021, an increase of $5641 million in revenue. (Coca-Cola, 2022, Earnings Release, p. 14). GDP of Coco-Cola’s Home Country and A Key Market (Country) The revenue segment from North America in 2020 was $11,477 (USD in millions) and $13,190 in 2021. Europe, the Middle East & Africa’s segment brought revenues of $6057 (USD in millions) in 2020 and $7193 (USD in millions) in 2021. (Coca-Cola, 2022, Earnings Release, p. 14). The GDP for the United States is 14.93%, and the GDP for Europe, the Middle East & Africa is 18.76%. The Fluctuations in GDP, Economic Growth, Investments, and Patents Affect the Company’s Profitability According to the Coca-Cola Company’s earnings release (2022), “the volume performance was driven by investments in the marketplace and ongoing recovery in markets where coronavirus-related uncertainty was abating” (p. 4). “Considered one of the leading global brands among the most admired corporations, Coca-Cola claims it supports the fight against obesity, sponsoring campaigns, research, and initiatives to promote physical activities” (Gertner & Rifkin, 2018, p. 161). References Coca-Cola (2022). The Coca-Cola Company. All Rights Reserved. Retrieved March 23, 2022 from https://www.coca-colacompany.com/home New American Standard Bible (1995). Retrieved March 25, 2022, from https://www.biblegateway.com/passage/?search=romans+8%3A28&version=NASB1995 Gertner, D. & Rifkin, L. (2018). Coca‐Cola and the Fight Against the Global Obesity Epidemic. Thunderbird International Business Review, 60(2), 161-173. https://doi.org/10.1002/tie.21888 The Great PepsiCo Fightback: Why Fizz No Longer Matters (2007). Strategic Direction (Bradford, England), 23(7), 17-20. https://doi.org/10.1108/02580540710753418