Purchase Solution

WalMart and the Foreign Exchange Problem

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

617 words, APA

Solution Preview

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 ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Risk

    325238 Foreign Exchange Risk and Contribution Please assist with responding with the following questions: What is foreign exchange risk? What factors contribute to foreign exchange risk? How is foreign exchange risk mitigated?

  • Analyzing and Managing Foreign Entry

    Organizations are also affected by foreign exchange fluctuation in foreign markets. ? Local legal requirements (Including labor, taxation and other regulatory requirements) ? Managing a geographically dispersed workforce; ?

  • Contemporary Issues in Walmart's International Financial Management

    Foreign Currency Risk and its Management As discussed above, Wal-Mart is exposed to changes in foreign currency exchange rates.

  • Global Risk

    exposure to changes in interest and foreign exchange rates.

  • Foreign exchange markets

    Foreign Exchange Rate - 350 words (this section) 6. Producer Price Index (PPI) - Conclusion - I am having problems with section 5 - the comapmy is WalMart. Foreign exchange markets are the largest financial markets in the world.

  • Walmart in a macroeconomic context

    Pick two of the Big Ideas of the Basic Terminology in Economics. Discuss how they apply to Walmart. Idea 3: Voluntary exchange makes both sellers and buyers better off, and markets are an efficient way to organize that exchange.

  • International Financial Manager at Walmart

    418123 International Financial Manager at Walmart For the international financial manager of Walmart, please describe the position they hold in the firm as well as their background and approach to managing foreign risks. Give examples.

  • Introduction to Macroeconomics:

    Pick two of the Big Ideas of the Basic Terminology in Economics. Discuss how they apply to Walmart. Idea 3: Voluntary exchange makes both sellers and buyers better off, and markets are an efficient way to organize that exchange.

  • Wal-Mart and Business Strategy

    Walmart could leverage its cost-efficient operations business model worldwide by informing foreign governments and investors that Walmart operations would bring profitability to those nations in which the stores operate, due to the fact that Walmart would

View More Related Solutions