Economic factors are very important for the economies of the world. In case the rate of interest which is impounded by the government is too high, they can cause problem for the people concerned. Decrease in the prices of the rubber by the Chinese government also included economic advantage for the company. This is because due to the decreased price of the rubber, they can gain higher profits and can also reduce the overall cost of the products indirectly benefitting their own market (Swoboda et al, 2012). Adidas is a company which is born in Europe the panic which is spread with respect to recession in Europe can have an impact over Adidas as well. Another important thing to consider is the rise in the labour cost in China which is causing the foreign investors to retreat away from the process of manufacturing in China. According to the survey, the overall wages of the labour in China has increased to 9 % in 2013 (Nadvi, 2011). Adidas is also facing a similar issue. Due to the economic factors there can be the reduction in the overall competitiveness of the firm.