How does the current global economy affect REI retail operat

How does the current global economy affect REI retail operations?

Solution

a. The fluctuations in the value of the currency in terms of other currncies leads to a change in the price of the goods that are outsources. These prices may increase or decrease and thus affect REI retail operations. With the global economy expands, REI generally experiences a lower costs of inputs purchased globally possibly increasing production and thus, revenue. While a slow down in the economy, causes an increase in the cost of inputs, which effects production and revenue negatively.

Also, global economy may cause barriers to trade as government of various countries may adopt policies which decrease the volume of trade between the nations.