If Coca-Cola opens a bottling plant in Brazil, what effect would it have on that country's Gini coefficient?
As income equality increases, the Gini coefficient falls. Therefore, a new bottling plant would reduce the
Gini coefficient, because the investment would create nonagricultural employment, and increase the
number and variety of skilled, semiskilled, administrative, managerial, and professional jobs available. This
would increase income equality by broadening the base of Brazil's middle class.
Economics