Global Risk
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Briefly describe 1 global risk faced by Walmart. Does Walmart hedge against this risk? Explain.
Response is 350 words
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One global risk faced by Wal-mart is the transactional foreign exchange risk. Wal-Mart operates worldwide and thus has receivables and paybales in foreign currency. This exposes it to transactional risk. The receivables and payables may not be due right away and may come in/go out in 30-45 days (depending on terms with the supplier/customer). This exposes Wal-Mart to financial transactional risk which must be mitigated.
Wal-mart does hedge against these risks. The paragraph below is from ...
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