A weak dollar versus a strong yuan
Some reading this case reach the conclusion that international markets have many risks and that changes in currency values is one of them. They would be right of course. However, some many go a step further and feel that the risks are too many and too great, thus a firm should focus only on domestic markets. You need to help them understand the difference between avoiding risk (not doing anything that contains risk) and risk avoidance via risk management.
ADDRESS THE FOLLOWING ELEMENTS IN YOUR PAPER:
Why is the value of the yuan relative to the dollar so important?
If you were the CEO of Wal-Mart and were preparing for a meeting with the most vocal members of the US Congress on China’s currency “manipulaton” what would you say to them?
Assuming that the yuan will appreciate further against the dollar, what should Wal-Mart do?
If you were an exporter from Argentina, Indonesia, Malaysia, or South Korea and selling to China, would you accept payment if yuan (instead of dollars)?
The requirements below must be met
Write between 750 – 1250 words (approx 3 – 5 pages) using Microsoft Word in APA style
Include conver page and reference page
Use at least three references
Cite all reference material (data, dates, graphs, quotes, paraphrased words, vaues, etc,) in the paper and list on a reference page
References must come from sources such as, CNN, online newspapers such as, The Wall Street Journal, govt websites,etc. Sources such as Wikis, Yahoo Aswers, eHOw, blogs etc. are not acceptable.