References

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Walmart is a multinational retail corporation that is involved in the operation of the chain of hypermarkets,

discount department stores along with the grocery stores from United States. It was founded by Mr. Sam
Walton Arkansas in 1962.
Walmart Inc. has recently opened its two retail outlets in the Chinese city of Shenzhen that has a market
of 3.7 million people. These are the massive outlets that comprises of local as well as the imported
products.  (Jacobs, 2018)
The company entered Chinese market in 1996 and has been operating in Shenzhen with more than
100,000 associates. It has more than 400 retails units that covers more than 180 cities all over the
country. (Walmart, 2021)
Analysis of how the outlets of Walmart in China would make use of the spot market in foreign
exchange.
The Walmart stores located at China need to make use of different currencies for purchasing the products
from different countries for which they need to convert their currency (Yuan) into other currency in the
sport market for purchasing the products. Furthermore, they could also make use of the spot market for
converting the excess Yuan denominated earnings into dollars that would be remitted to its US parent.
Analysis of how the international money markets would be used by Walmart for the establishment
of its other stores in Asia.
As Walmart is establishing other Walmart stores in Asia, it needs to preserve some portion of its deposits
in the Eurocurrency market for upholding the growth of Walmart stores in the foreign markets. These
foreign markets tends to provide a gateway for borrowing from international banks in the Eurocurrency
market which will serve as its lending source on a short term basis.
Determination of how the international bond market would be used by Walmart for the financing
of Walmart’s new outlets in the foreign markets.
Walmart can issue bonds in the Eurobond market for generating funds required to establish its new
outlets. These bonds may be denominated in the needed currency. Once the stores are open, the cash
flow generated by them can be utilized for the interest payments of these bonds.
References
Jacobs, H. (2018). Photos reveal what it’s like to shop at Walmart in China — which is shockingly different
from the US and struggling to compete. Retrieved from https://www.businessinsider.com/walmart-in-
china-most-popular-international-supermarket-photos-2018-4

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