International Finace in Wal-Mart

INTERNATIONAL FINANCE IN WAL-MART
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(9 November 2010)
International Finance in Wal-Mart
Introduction
International finance has been a major boost for businesses world over to grow and dominate their sectors. Those businesses that utilize this facility end up being a major success internationally. The use of international finance means that the businesses have investments, cash flows and capital globally; this increases their chances of growth through investing in global markets. Global financial institutions such as; world bank, world trade organization, commercial banks have been responsible for funding business that have transformed to big businesses making volumes of sales globally. Wall-Mart gives a perfect example of a business that has utilized international finance to retain sustained growth and development. This paper tackles international finance and how it has enable Wall-Mart to grow beyond borders while still maintaining profits, it also answers the question how regulatory bodies affect financial decision-making.
Wal-Mart Current Operations
Wal-Mart does a lot of business on a global standpoint. Wal-Mart currently operates in 15 markets internationally. Wal-Mart uses the every-day low cost every-day low price (EDLC-EDLP) strategy to reach their consumer base and attract all types of customers. In order to achieve a successful international market Wal-Mart uses every day practices to offer various products, develop efficient store layouts, and offers price points. These practices allow international markets to obtain faster sales growth and continue to meet consumer needs (Wal-Mart, 2010).
Wal-Mart looks forward a continuance in growth in the international market. Wal-Mart expects to open new locations that do not require as much capital, expand current stores to meet consumer needs, and focus on capital efficiency. Also when doing business internationally Wal-Mart uses special brands such as Extra Special a United Kingdom brand that is offered in the United Kingdom stores to meet consumer needs. Maintaining access to these brands allows Wal-Mart to provide the brands consumers like to buy in their home countries (Wal-Mart, 2010).
The Global investment banking process allows Wal-Mart to operate in foreign countries by seeking advisement to buy land, develop company relationships with private brand companies, and to operate efficiently in a country beyond their norm. Global investment banking can help Wal-Mart expand their market share through seeking advisement from investment bankers to help them develop a strategy to have a successful business in a specific country.
The global investment banking process helps guide and aid any business in doing business in an environment and economy that they may not be familiar with. The investment banking process most of all offers advice for a variety of business ideas and strategies from increasing market share, acquisitions, mergers, new locations, and building business relationships with foreign supplies and other vendors (Investment Banking Returns, 2010).
Wal-Mart uses global investment banking to oversee their global business processes and current business expenditures to ensure Wal-Mart reaches their investment goals in a manner that is within their capital needs. Global investment banking helps Wal-Mart make important business decisions in their foreign market. These decisions range from expanding current stores, finding new locations to build new stores, and develop and maintain business relationships with product suppliers to meet the personal brand needs on their foreign consumer base.
How regulatory bodies affect financial decision-making
The government allows investors to view Wal-Mart’s history and progress through required document filings (Yuille, n/d). These registration statements are provided quarterly and annually by the Securities and Exchange Commission (SEC). The SEC was formed in 1933 to put a stop to stock manipulation and fraud (Yuille, n/d). The SEC collects detailed information about the financial health of Wal-Mart because Wal-Mart is a publically traded company that issues stocks. Investors look at these statements to analyze Wal-Mart’s financial performance and decide whether to buy, sell, or hold their securities (Yuille, n/d). Wal-Mart investors can look at a prospectus of the company. This document offers details about how Wal-Mart operates, its history, management style, financial outlook, and risks (Yuille, n/d). The prospectus includes the income statement. Investors can get a comprehen...