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    Impact of Chinese Yuan revaluation on Yum! and Wal-Mart

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    Suppose China suddenly decided to give into the US demands and, overnight, revalued upwards the Yuan by 20%.

    Consider the impact of this increase in value of the Yuan on two large US companies: (1) Yum!Brands whose 2007 second quarter profits were $214 million roughly half of which resulted from sales made by KFC and Pizza Hut within China; and (2) Wal-Mart where the great majority of the products sold in its US stores are made in China.

    © BrainMass Inc. brainmass.com October 9, 2019, 10:27 pm ad1c9bdddf
    https://brainmass.com/business/business-culture-in-china/chinese-yuan-revaluation-yum-wal-mart-220821

    Solution Preview

    Suppose China suddenly decided to give into the US demands and, overnight, revalued upwards the Yuan by 20%.
    Fluctuations in foreign exchange lead to greater risks for the organization. Let us discuss the following situations:

    Consider the impact of this increase in ...

    Solution Summary

    This discussesss the impact of Chinese Yuan revaluation on Yum! and Wal-Mart

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