Analysis of the usage of the spot market in foreign exchange by Walmart outlets in China

         The market of foreign exchange permits the international exchange of products, services,
and securities through the purchase and sale of.  The foreign exchange market is not confined to
a single location but rather constitute of large banks around the globe which acts as
intermediaries among those business and lenders who want to purchase and sell a particular
currency.  One of the dominant constituents of the foreign exchange market is the spot market
which refers to the public financial market that allows immediate foreign exchange transaction. 
As per Basu (2020), the spot market is a market that facilities immediate sale and purchase of
commodities or financial instruments.  The spot rate determines the exchange rate at which one
currency is traded for another in the spot market (Madura, 2018). 
            Walmart outlets in China require other currencies to purchase commodities from other
countries and should alter the Chinese currency (Yuan) into other currencies in the spot market
for the payment of the imports.  Furthermore, the Walmart stores could also use the spot market
foreign currencies to remit the earnings to the U.S. parent company by converting the excess
income denominated in yuan into dollars.
Utilization of the international money markets by Walmart while establishing other
Walmart stores in Asia.
            The international money market is also known as foreign exchange trading, or forex
refers to the market where the international trading of currency between different countries takes
place.  The international money market functions in pairs to estimate the exchange rate between
currencies. For instance, EUR/USD indicates the exchange rate of Euros for U.S. dollars. Even
though certain pairs compare currencies other than the U.S. dollar, the majority of pairs
determine the rate of one currency against the U.S. dollar. Thus, making the U.S. dollar the
highly active trading currency (International Money Markets: Features & Opportunities, 2018).
            Since the money market includes numerous banks which facilitate short term loan and
accept deposits, Walmart can utilize it by taking short term loans to support its operations and
fulfill the requirement of the working capital by establishing new units.  Likewise, to establish
other Walmart Outlets in Asis, Wal-Mart may preserve certain deposits in the Eurocurrency
market which can be utilized in the time of need to finance the development of Wal-Mart stores
in foreign markets.  In case of funds deficit, the Wal-Mart outlets in foreign markets can borrow
from banks in the Eurocurrency market.  Hence, serving as a the source of deposit or lending on
a short-term basis.
Determine how Walmart could use the international bond market to finance the
establishment of new outlets in foreign markets
            The international bond market aids in the movement of funds amongst borrowers who
demand long-term funds and investors who have surplus long-term funds (Madura, 2018).  This
market facilitates long-term finances for various multinational corporations.  Hence, Walmart
can employ the international bond market to accumulate finances to meet the substantial capital
expenses.  Furthermore, Wal-Mart can issue bonds in the Eurobond market to create funds
required to set up new stores.  The bonds may be denominated in the currency which is required
and after the establishment of the outlet, the earning generates can be utilized to repay the bond's
interest.