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

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.

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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 ...

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

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