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Corporate Research : Wal Mart

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Corporate Research Paper Wal-Mart
Linglan Gu

Introduction
Risk management and offshore borrowing are some of the activities undertaken by multinational companies to help seal loopholes of foreign exchange risk. Moreover, these multinational corporations have stringent risk management policies used to create efficiency and a concise administration in all financial operations. Investment in foreign countries is also a means through which multinational companies reduce currency risk that may hinder the growth of the enterprise. This practice is also referred to as over the counter finance since it involves the exchange of exchange between two parties without any supervision being required. It is different from exchange trading that…show more content…
In doing this, the paper will use Wal-Mart as a case study to investigate various aspects of foreign exchange risk management policies and then give an interpretation on the current situation of the global financial policy.
Wal-Mart has dominated 27 countries in the world with 11,435 overseas subsidiaries. Its sales are widespread across all its subsidiaries but controlled from regional and head offices. Moreover, Wal-Mart has involved itself in international trade contributing a lot to the overall supply in the international market. In addition, Wal-Mart has been the market leader in providing fast moving consumer goods with all its potential and prospective customers ' worldwide (Baker, & Powell 2005).
Wal-Mart sale is in high volume with each geographical location where it has a subsidiary receiving an equal share of the required products to supply. The subsidiaries in Europe receive the largest number of sale compared to the rest of the branches. Africa has only one subsidiary in South Africa and thus registers the lowest number of purchase compared to other branches. However, the general number of sale recorded by Wal-Mart is high because the company has gained a lot of market share in the world. Economic survey indicates that Wal-Mart is the largest company in sales and that registers the highest volume of revenues in the world (Kendall & Gerald 1998).
Wal-Mart being the
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