18 | P a g e Economic Environment: The economic factors analyze the potential areas where the firm can grow and expand. It includes the economic growth of the country, interest rates, exchange rates, inflation rates, wage rates and unemployment in the country. Economic environment examines the local, national and world economy impact which is also includes the issue of recession and inflation rates. The non-alcoholic beverage industry like Bangladesh has high sales in countries outside the U.S because here alcohol is prohibited from religious perspective. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry like Bangladesh. There is a low growth in the market for carbonated drinks, especially in Coca Cola‟s main market. The company first analyzes the economic condition of the country before venturing into that country. When there is an economic growth in the country, the purchasing power among people increases. It gives the company or the marketer a good chance to market the product. Coca-Cola, in the past identified this correctly and rightly started its distribution across the country. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. When there is an increase in the interest rates, it may deter the company in further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand, when there is an increase in the inflation the employee demand for a higher wage rate to cope up with the cost of living.