1,035
14
Essay, 2 pages (300 words)

Walmart

Wal-Mart Affiliation a) Wal-Mart outlets in China would use spot markets in the foreign exchange in various ways. The spotmarket could be used in the immediate physical delivery of specified commodity or it could be concerned with a forward market. In the case of a forward market, the delivery of Wal-Mart’s specified commodities would be made at a later date. Forward transactions would consist of contracts for exchanging the Chinese Yuan for the US Dollar at the specified future date (Mehrling, 2005).
b) Wal-Mart might utilize the international money market when it is establishing other Wal-Mart stores in Asia through various ways. First, Wal-Mart would connect to the values international money market and foreign exchange contracts. It will also use it to trade the excess earnings through foreign exchange. The international money market exchange would be used for trading the extra earnings in the local currencies of various Asian countries as well as in initiating interest rate future contracts and options (Mehrling, 2005). This will be done with a view of avoiding shocks caused by unexpected devaluation of the respective local currencies within the specified Asian countries.
c) Wal-Mart could use the international bond market to finance the establishment of new outlets in foreign markets by selling foreign bonds to foreign borrowers (Mehrling, 2005). Since the foreign bonds are designated in local currency, Wal-Mart could target borrowers within the targeted regions/countries where the new outlets are to be established. This will raise the amount required to finance the new outlets. Once established and wishes to establish more outlets within a specific country, it can act as domestic borrower and issue local bonds to raise funds for more outlets within the same country.
Reference
Mehrling, P. (2005). Fischer Black and the revolutionary idea of finance. John Wiley and Sons.

Thank's for Your Vote!
Walmart. Page 1
Walmart. Page 2
Walmart. Page 3

This work, titled "Walmart" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'Walmart'. 26 September.

Reference

AssignBuster. (2022, September 26). Walmart. Retrieved from https://assignbuster.com/walmart-essay-samples-7/

References

AssignBuster. 2022. "Walmart." September 26, 2022. https://assignbuster.com/walmart-essay-samples-7/.

1. AssignBuster. "Walmart." September 26, 2022. https://assignbuster.com/walmart-essay-samples-7/.


Bibliography


AssignBuster. "Walmart." September 26, 2022. https://assignbuster.com/walmart-essay-samples-7/.

Work Cited

"Walmart." AssignBuster, 26 Sept. 2022, assignbuster.com/walmart-essay-samples-7/.

Get in Touch

Please, let us know if you have any ideas on improving Walmart, or our service. We will be happy to hear what you think: [email protected]