Economic Analysis and Factors
During the recession of 2001, the US government took aggressive actions to turn the economy around by 2002. Coca-Cola took note of this, and realized that loan interest rates would likely rise as the economy returned. Thus, they took out low-cost loans in 2001 to fund growth in 2002. They used the loans for research and development on new products to capitalize on in a strong 2002 economy. Currently, as global growth is slowing, Coca-Cola may be watching for a similar opportunity.