The Dollar Surge and its Effect on Wal-Mart
The dollar has experienced a high rise in value over the last six months bringing it to nearly an all-time high in all major currency trading outlets in the world. The gain in the dollar has seen the cost of goods exported from the United States increase in value as other currencies become cheaper due to the impact of the bullish dollar. This performance by the dollar comes in the wake of expected interest rate raise by the Federal Bank.
With this increase in the value of the dollar has come the predicament of low sales for goods and services produced in the United States as they try to compete with cheaper imports from its competitors who have gained from the rise in the dollar exchange value (Thoma). The US consumer can now acquire a similar product for less from outside than the one produce locally in the US. The most affected are exporters from the US such as Wal-Mart.
With close to $485 billion of its revenue coming from outside the US, the rising dollar is cutting these benefits by allowing competitors from China where the Yuan has been devalued to have access …show more content…
The purchase of assets is recognized under this category. Changes in its shareholders equity, increase in debt, dividend and interest pay-outs are recognized in the Financing cash flows section of the cash flow statement. The statement recognizes increments in the quarter or financial year. In addition to this, the reports provide explanatory notes and calculations on the summary provided in the cash flow statements. The notes provide an in depth explanation and computation of the financial cash flows
The dollar has experienced a high rise in value over the last six months bringing it to nearly an all-time high in all major currency trading outlets in the world. The gain in the dollar has seen the cost of goods exported from the United States increase in value as other currencies become cheaper due to the impact of the bullish dollar. This performance by the dollar comes in the wake of expected interest rate raise by the Federal Bank.
With this increase in the value of the dollar has come the predicament of low sales for goods and services produced in the United States as they try to compete with cheaper imports from its competitors who have gained from the rise in the dollar exchange value (Thoma). The US consumer can now acquire a similar product for less from outside than the one produce locally in the US. The most affected are exporters from the US such as Wal-Mart.
With close to $485 billion of its revenue coming from outside the US, the rising dollar is cutting these benefits by allowing competitors from China where the Yuan has been devalued to have access …show more content…
The purchase of assets is recognized under this category. Changes in its shareholders equity, increase in debt, dividend and interest pay-outs are recognized in the Financing cash flows section of the cash flow statement. The statement recognizes increments in the quarter or financial year. In addition to this, the reports provide explanatory notes and calculations on the summary provided in the cash flow statements. The notes provide an in depth explanation and computation of the financial cash flows