Spot-money and bond markets

Assignment Help Accounting Basics

Reference no: EM1345057

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

Reference no: EM1345057

Questions Cloud

Find what is the cost of the common stock : If the current stock price is $42, and the flotation cost per share is $4, evaluate what is the cost of the common stock?

Report foreign currency on consolidated balance sheet : A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1, 2009, for 100,000 pesos each. It pays for both items on June 1, 2009

Explain how does this complicate the agency problem : Can goals like avoiding unethical or illegal behavior be in conflict with the goal of the firm. Explain how does this complicate the agency problem.

Find annual interest on your investment : Consider you're starting from zero now and you earn 10% find annual interest on your investment

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

Find the magnitude and direction of the average force : A 46 kg skater is standing still in front of a wall. By pushing against the wall she propels herself backward with a velocity of - 1.2 m/s. Her hands are in contact with the wall for 0.8 s. Ignore friction and wind resistance.

Resolve the thickness of lead required to reduce intensity : The immediate environment of a reactor contains a large flux of 10 MeV gamma rays. Resolve the thickness of lead required to reduce the intensity by a factor of 1012. Assume the mass absorption coefficient of Pb for 10 MeV photons is m/r = 0.06 cm..

What is the estimated loan rate for the five-year bank loan : The yield on a five-year U.S. Treasury note is 1.95 percent, and the three-month U.S. Treasury bill rate is 0.11 percent. Evaluate what is the estimated loan rate for the five-year bank loan?

Explain why is it important to take into account changes : Explain why is it important to take into account changes in the participation rate and in the ratio of full to part time employment in assessing the economic and social impact of changes in the unemployment rate.

User Account

All Pages