Unexpected changes in exchange rates

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Walmart is the world's largest MNE by revenue (over $US500b annually) with 11,700 outlets in 28 countries (but not Australia).

Walmart sources the products it sells from all over the world, so managing foreign exchange exposure is therefore extremely important for the company.

Operating exposure looks at how unexpected changes in exchange rates affect company value.

Because Walmart is so large, it can relatively easily access the international capital markets. Briefly discuss the three determinants of the cost and availability of international capital for Walmart.

Reference no: EM133121515

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