Describe how Walmart needs to manage foreign exchange risk.

The Walmart International Expansion Recommendation

• Review the Walmart Case Study interactive below.
• Review the current financial statements of Walmart.
o Option 1: Yahoo! Finance (Links to an external site.) web page
 Enter the stock symbol of Walmart, Inc. (WMT) in the search bar
 Click on the “Financials” tab
o Option 2: EDGAR | Company Filings (Links to an external site.) database
 Enter “Walmart Inc.” in the search bar
In prior weeks, you learned about finance and financial analysis. This week you will put it all together. Using the Walmart Case Study expansion in the United Arab Emirates (UAE), you will complete a comprehensive recommendation to Walmart executives either recommending or forgoing expansion into your selected country.
In your paper,
• Summarize the culture and financial climate of the country and why it would be favorable or unfavorable for Walmart to expand in that region.
• Describe your country’s foreign exchange rates and how those rates could impact Walmart’s future financial performance. Be sure to address:
o interest rates,
o balance of payments,
o government policies, and
o other factors such as taxes and tariffs.
• Describe how Walmart needs to manage foreign exchange risk.
• Analyze any potential political risk and its impact on the financials.
• Propose how Walmart should fund this new expansion.