1. General Economic Outlook Cott Corporation earned its revenue mainly from United States, Canada and U.K. Its revenue from these countries accounted for 97.83% and 98.62% in 2003 and 2002 respectively. However, the company tends to increase its operation in Mexico as a result of its acquisition in .. Therefore, our discussion will be based on 4 countries as mentioned above. 1.1 Global Economic Outlook From economic in bubble stage in 2000 to the adverse effects of the September 11, 2001 terrorists attack on the U.S and the subsequent wars in Afghanistan and Iraq, the SARS outbreak in Canada and China in 2001-3. Over the past year, the global recovery has become increasingly well established, with global GDP growth now …show more content…
Therefore, we do not anticipate that the average consumers ' level of real income will decrease much over the next 5 years. Exchange rate We present percent change year over year of period average in exchange rate of local currency to US$. We believe this indicator is important as Cott corporation 's revenue and operation are in other countries apart from United States. The exchange rate will affect the financial performance of the company and directly affect the consolidated financial statement because the result has to convert to US. dollar. As shown in the figure , Both Canada and United Kingdom currencies will continually appreciate against US. dollar. Implication for Cott Based on the general indicator it would seem as though in the short term the economy is growing from the recession with a high level of real GDP growth of 5%. However, with the continuously increase in oil price may hold the overall economy from going well as expected. Moreover, the exchange rate for both UK and Canada that continuously appreciate against US may affect consumption by consumer and the operation of the company. Overall, we expect that the economic will grow at stable rate with relatively increase for the next 5 years. Beverage and bottling industry For beverage and bottling industry, the cost of acquiring and converting aluminum and PET resin constitutes the majority of bottlers ' packaging costs. Packaging costs represent approximately 45% of
According to Staff review of the Economic Situation for January 28-29, the economic growth rate picked up in the second half of 2013. There was a gradual increase in the total payroll employment and a decline in unemployment rate. Consumer price inflation was still performing poorly than expected, while longer-term inflation expectations remained stable.
Department of Finance Canada (2009) states Canada has been significantly affected by the global recession and Canadian economy growth began to slow in the fourth quarter of 2008. Real GDP declined by 3.7 percent in the fourth quarter of 2008. Although Canadian economy is being affected by the global recession, the Canadian economy is still better than other industrialized countries (CMA Business Case)
The late 1990’s into the early 2000’s was a time of great economic success that took a turn for the worst as the war against terrorism began. In America, the economy was at its peak especially on Wall Street until September 11th 2001. The attacks that occurred on September 11th deeply affected America. The attacks caused the Dow to drop tremendously along with causing the recession to deepen. America was led into of the biggest government spending periods in a long time. The cost to fund the war along with to rebuild the economy held a toll on all Americans. America had to dig itself out of a hole. Unlike the economy, technology was on the rise. Many new inventions such as wireless internet, mobile devices, and new forms of social media were created.
The forecast for US GDP for the next five years is positive with an average rate of 1.94 percent. From 2016 to 2020, the growth of US GDP as per the forecast will be 2 in 2016, 1.8 in 2017, 1.9 in 2018, 2 in 2019 and 2 percent in 2020 respectively (United States | Economic Forecasts | 2016-2020 Outlook). According to the actual or aggregate forecast for the next five years, US GDP will be $ 18,295 billion in the year 2020. Therefore, the trend is positive, and US GDP will continue to rise gradually.
According to easynomics.com, from Q3 2012-Q2 2015, there was a confirmed upward trend with real GDP rising which translates to approximately 2.26 percent annual growth rate. Although the increase rate is too slow that people may not feel the recovery, but it does suggest the increase.
Undoubtedly their will be ups and downs but the long term average of 9% appears to be reasonable and stable for planning purposes. Since this
GDP & GDP Growth (Trend) - The economy of Canada shortens by 0.4 % in the last three months’ quarter. In the first and second quarter of 2015 it also shortens by 0.2% and 0.1% respectively but at the end of the year, it will able to achieve moderate results. This narrow down in Canadian economy is mainly caused by the decline in crude petroleum output. Since 2009 this is the biggest contraction in the
Demand is being forecasted to grow at an annual rate of 20% for the next 3 years.
As economic growth increases moderately in 2014, the rate of inflation is expected to remain below 2 percent. The price of goods in the country will continue to be restricted by global competition and use of production capacities that are relatively low as compared to historical averages. In addition, the inflation rate will remain below 2 percent because of decrease in energy prices and small increase in the prices of food. Nonetheless, while energy prices continue to reduce this year, the percentage of the decrease will be less while food prices may regain normal rate of growth.
over at least the last six years. The recent acceleration in the projected growth rate for
The Canadian economy today is at an all-time high with higher economic growth and rising GDP Canada is seeing great changes in the economy. The GDP increase by 1.1 percent in just the first 3 months of 2017. Canada is quickly recovering from the decline in oil prices that significantly slowed down the growth of the Canadian GDP. Because oil plays such a major role in the Canadian economy this had a huge tole on the overall GDP of this country. But, as the country approaches an increased GDP the energy sector does not seem to be hindering the GDP any longer. With the price of oil and gas going back up this has significantly increased the GDP of Canada due to the large amount of petroleum that Canada produces.
As the economy slowly improves, in the fourth quarter of 2013, the US GDP was at an increase of 4.1% (Kurtz). Although it has not fully recovered from the Great Recession, the economy has been on the upward trajectory. Home prices have increased significantly over the past two years
Another example of company shows us a company that was much more successful than SMS, Keiper, which based in Germany and exporting metal frames for cars to the US. Company invest money in the manufacture in Canada, when the exchange rate of euro were equal to the US dollar. But there were some disadvantages of being based in Canada and it raised a costs of the Keipers work. In addition, company faced problems with exchange rate because the company still produces some parts in Germany and sent to US.
The economy continues to improve despite the last couple of years, by having an increased number of government budgets, increases number of efforts to reduce the public debt levels, and an export oriented growth
Looking back over the past ten years and most especially the past three years for investment returns and economic possibilities, there seems to be more growth in the past 24 months than what we have seen in over a decade. The rapidly changing international economic climate and the current government struggles with tax based polices and the continued climbing US