According to the circular flow of economics, which market is james participating in by going out to dinner with his wife, julie? james works at an automobile factory. every day he goes to work and inspects the machines at the factory to make sure they are running smoothly. at the end of the every week, james is paid by his boss, bill, for his good work. james takes his paycheck to the bank every friday and deposits most of it, but keeps a little bit of spending money. he then takes his wife, julie, out for dinner, using the leftover money from his paycheck.

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.