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International Finance Paper

In: Business and Management

Submitted By leosan56
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International Finance Paper
Leonel A. Santana
FIN/419
October 11, 2012
Florentino Lopez

International Finance Paper To comprehend how worldwide banking has made it easier for Wal- Mart to attain its growth plan, one has to understand the contents of the worldwide banking process. According to financial experts worldwide investment banking includes acquisitions, mergers, underwriting, distributing equity, debt, financial restructurings, derivative securities, and divestitures. As far as Wal-Mart is concerned acquisitions and mergers have allowed them to establish and expand its being there in nations not fond of global nations; namely India and China. (Wal-Mart, 2010). With the world’s population at 6.8 billion and with China and India’s combined population approximated at 2.5 billion; both countries make up almost 40percent of the world’s population. Trying to tap into the biggest markets in Asia offers vast potential for expansion and profits for Wal- Mart. On the other hand India and China prove to be difficult markets an American company to go into because the government lacks related transparency, and discriminates American firms. To rise above the difficulties of foreign investments and increase its presence in China and India, Wal-Mart is relying on merging and using joint ventures. Wal- Mart’s venture consists of a 35 percent interest in China’s BCL (Bounteous Company Limited), and a joint investment in India’s Bharti Enterprises. Despite the fact that, the advantage of the global banking process, explicitly in joint investments, Wal- Mart has been successful in its mission to increase business in challenging trading countries. Joint investments lets Wal- Mart take advantage of the knowledge of native people while reducing any type of discrimination from the nation’s government....

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