Financial Factors Analysis and Nike Inc. Business Operations

This report provides an analysis of the financial factors that significantly impact the business operations of Nike Inc. It begins by highlighting the influence of interest rates on investment inflow, emphasizing that a reduction in interest rates can decrease investor interest and cash flow. The report then examines the role of exchange rates in affecting the company's costs, particularly given its global operations and reliance on foreign labor and outsourcing. Furthermore, it discusses the impact of corporate tax rates on Nike's net profit, reinvestment, and wage payments. Inflation and its effect on foreign investment and cash flow are also considered. Finally, the report addresses the effects of increasing wages and rents on production costs and profit margins, concluding that these factors can impact the company's revenue. The report references various academic sources to support its claims.