Spot-money and bond markets

Reference no: EM13116875

Recently, Wal-Mart established two retail outlets in the city of Shanzen, China, which has a population of 3.7 million. These outlets are massive and contain products purchased locally as well as imports. As Wal-Mart generates earnings beyond what it needs in Shanzen, it may remit those earnings back to the United States. Wal-Mart is likely to build additional outlets in Shanzen or in other Chinese cities in the future.

a. Explain how the Wal-Mart outlets in China would use the spot market in foreign exchange.

b. Explain how Wal-Mart might utilize the international money markets when it is establishing other Wal-Mart stores in Asia.

c. Expalin how Wal-Mart could use the international bond market to finance the establishment of new outlets in foreign markets.

My answers:

a. Many foreign transactions do not require an exchange of currencies but allow a given currency to cross country borders therefore it will be easy for the US dollar to be exchanged on the spot market.

b. When short term funds are needed, Wal-Mart will be able to utilize internation money markets to finance imports,etc.

c. By utilizing the international bond market, Wal-Mart will have access to long-term funds in the foreign market to help with establishing new outlets within the foreign markets.

Reference no: EM13116875

Questions Cloud

What is the total magnification of an object : what is the diameter field of view for a 100x objective if the dfv for the 10x objective is 2.5 mm express in microns.

Calculate the volume and density of a rock : calculate the volume and density of a rock that has mass 110g and will cause the water to rise in graduated flask from 450 ml-715 mil, express in cm^3. calculate density of mass 36g and vol 72 ml, will it sink?

Find how many expected to weigh between range : Standard deviation of 30 lb. Find the percentage of such weights between 190 lbs and 225 lbs. among 400 men aged 18 to 74, how many are expected to weigh between 190 lbs and 225 lb.

Explain issues that organizations face when trying to expand : Identify issues that organizations face when trying to expand globally as a result of opportunities afforded by new technology.

Spot-money and bond markets : Explain how the Wal-Mart outlets in China would use the spot market in foreign exchange. Explain how Wal-Mart might utilize the international money markets when it is establishing other Wal-Mart stores in Asia.

Would an increase in an economy''s gdp affect trade patterns : If world prices increase, the current account balance of the importing country will improve.True / False? Explain and should high-income countries erect or maintain trade barriers against imports from low-wage countries?

Why is the sampling not simple random sampling : stratum 3 contains 1,000 invoices, and stratum 4 contains 3,450 invoices. A sample of 500 sales invoices is needed. What type of sampling should you do? Why?

Analysis the positive and negative reactions to use controls : Analysis the positive and negative reactions to the use of these controls on McDonalds. Need at least one reference

Use pink labels to identify the male and female gamete types : Punnett squares are convenient ways to represent the types and frequencies of gametes and progeny in experimental crosses. This Punnett square shows the results of a Gg x Gg cross to form F2 progeny.

User Account

All Pages