Assume that Nike Inc. (NKE) (http://www.nikebiz.com/; http://money.cnn.com/quote/quote.html?symb=NKE; http://news.nike.com/news/nike-inc-introduces-2015-global-growth-strategy) is expanding globally. One way to expand globally is to buy shares of other companies, while other way is to open up new branches. But both options are not risk free.
Read the information in the background material, look for more information, and then write a 2 to 3 page paper answering the following questions:
How important is it for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals?
Are there any major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole?
Please explain your reasoning.
In the course of preparing your paper, you will probably want to think about, among other things, the main economic variables such as interest rates, inflation,….that are used by financial managers to identify long-term trends.