Consider the Macroenvironment Facing a Large, International Airline Headquartered in the United

question 48

Essay

Consider the macroenvironment facing a large, international airline headquartered in the United States (such as American or United).Give at least three examples of important trends or events from each of the five segments of the airline's macroenvirornnent (macroeconomic, technological, demographic, social, political, and legal), and explain whether each represents a threat or an opportunity for the firm.

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Definitions:

Uncovered Interest Parity

A financial theory stating that the difference in interest rates between two countries is equal to the expected change in exchange rates between those countries' currencies.

Forward Exchange Rate

The rate agreed upon for exchanging one currency for another at a future date.

Spot Exchange Rate

The immediate rate at which one can purchase or sell currency for on-the-spot delivery.

London Interbank Offer Rate

LIBOR; a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.