assignment

CASE STUDY – WALMART

Walmart, a USA based company, currently operates more than 10,700 stores in 27 countries around the world. They operate stores under 69 different banners globally. For the fiscal year ended January 2013, Walmart increased net sales by 5% to $466.1 billion and returned $13 billion to shareholders through dividends and share repurchases. Walmart was founded in 1962 by 

Sam Walton

 when their first store opened in Rogers, Arkansas. 

You are required to select one of the following countries Walmart currently operates in to discuss the foreign exchange risk Walmart is exposed to because of operating in that country.

Possible countries: Argentina, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico Nicaragua, United Kingdom, South Africa.

Your report should address the following issues:

· The foreign exchange risk exposure of Walmart in that country (transactional, translation, economic, FDI)

· The country specific risk (political, economical, environmental, social, legal)

· The volatility of the exchange rate compared to US dollar

· Any measures Walmart takes (or should take) to protect themselves against the foreign exchange risks identified.

Instructions:

1. Typed in MS-Word .

2. Document should be between 3 and 5 pages long.

3. Use of acceptable in-text referencing of all sources consulted.