CHAPTER 3

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Unformatted text preview: interest rates rise, then funds needed for capital expansion become more costly or unavailable. 2. The key economic variables that a firm should monitor are listed in Table 3-1. The list includes (1) shifts to a service economy in the United States; (2) availability of credit; (3) level of disposable income; (4) propensity of people to spend; (5) interest rates; (6) inflation rate; (7) unemployment trends; and so on. 3. The economic standard of living varies considerably across cities and countries. For example, a cup of coffee is $4.76 in Tokyo but just 94 cents in Rio de Janeiro. SOCIAL, CULTURAL, DEMOGRAPHIC, AND 1. ENVIRONMENTAL FORCES Social, cultural, demographic, and environmental changes have a major impact on virtually all products, services, markets, and customers. 2. Social, cultural, demographic, and environmental trends are shaping the way Americans live, work, produce, and consume. New trends are creating a different type of consumer and, consequently, a need for different products, services, and strategies. 3. Significant trends for the future include consumers...
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This document was uploaded on 02/19/2014.

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