Question No.

1: Analyze how the Walmart outlets in China would use the spot market in foreign
exchange
The Walmart outlets in China can make a use of various currencies for purchasing the products from
different countries with the conversion of their currency into other currency in the spot market for product
purchasing.  The exchanging of the currencies is not required while carrying out various foreign
transaction and the given currency is allowed to be taken outside of the county (Saket, N., 2006), so, one
of the possible ways could be the exchange of the US dollar on the spot market which can be the easy
one.  They can also make the use of spot market for the conversion of extra earnings labeled in Yuan into
dollars which can be the source of remittance for the U.S. parent.
 
Question No. 2:  Explain how Walmart might utilize the international money markets when it is
establishing other Walmart stores in Asia.
When the Walmart is opening its other outlets in Asia, the various currencies is required to be preserved
in the international market for supporting the growth of Walmart outlets in the foreign markets.  The
Walmart can borrow funds from the international banks in the necessary situation for trading in the foreign
markets which shows the banks can acts as a source of lending on temporary basis for Walmart.
 
Question No. 3:  Determine how Walmart could use the international bond market to finance the
establishment of new outlets in foreign markets.
 The international bond market could be useful for the Walmart to approach funds for long-term basis in
the foreign markets for financing the startup of new stores.  For generating the funds for financing the
startup of new outlets, the Walmart utilize the Eurobond market for issuing bonds.  The bonds can be
labeled in the required currency and with the generated cash flows from those outlets after their
establishment could be used for paying the interest on the issued bonds.
 
Reference
Saket, N. (2006). International finance. Finance India,  20(1), 254-255. Retrieved from
https://search.proquest.com/scholarly-journals/international-finance/docview/224377901/se-2?
accountid=158986