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    WalMart and the Foreign Exchange Problem

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    Whether Walmart has any particular foreign exchange problems resulting from its strategic stance payment in USD, and what alternative policies the company could adopt in the event of such problems.

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    The response address the queries posted in 715 words with references.
    //Before writing about the foreign exchange problems faced by Wal-Mart, we will write about the meaning and importance of 'Foreign Exchange Market'. Then, we will write about the foreign exchange problems faced by the Company resulting from its strategic payment in USD. It will assist in analyzing the problems faced by the firm in managing its foreign operations.//

    Foreign Exchange Market:

    A market where the currency of one country is exchanged for the currency of another country is known as the foreign Exchange market (Pandey, 2005). The participants of the foreign exchange markets are: Arbitrageurs: Arbitrageurs seek to earn risk less profits by taking advantage of the differences in the exchange rates among different countries. Trader: They operate in the foreign exchange market because the exporters receive foreign currencies. Hedger: they operate in a market to protect themselves against the risk of fluctuation in the foreign exchange rates. Speculator: they trade in foreign currencies to get benefited from the exchange rate fluctuation (Pandey, 2005).

    Foreign Exchange Problems:

    World's largest and most successful corporations actually face some ...

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