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  • 14 Apr 2017

    When you think of exporting, looking to Asia may not top your list. Besides the many barriers, other markets such as Canada may seem more appealing due to their familiarity. Marc Mealy, VP-Policy of the US-ASEAN Business Council challenges this notion. He recently spoke about the growth opportunities in the South East Asian region.

    Mealy stated that the ASEAN market, which consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam is becoming Asia Pacific’s leading regional economic hub. Together the 10 ASEAN economies make it the seventh largest economy in the world. The US-ASEAN two-way trade and investment flows are growing in both directions.

    The ASEAN market has a population of 630 million potential new consumers in a region with an average GDP growth rate of 5 percent per year. This is phenomenal growth in a region that has expanded 300 percent since 2001. With Singapore, Malaysia, Thailand, and the Philippines topping the rankings for ease of doing business, this region is a great place for companies to begin expanding their exports beyond the Americas. They can do it quicker and with less hassle than many other markets in the world.

    Mealy, an International Economist and University of Florida graduate, mentioned he spent a year in Tampa after studying. He is aware of the local business climate and the strengths and opportunities medium size enterprises have available to them. Many local exporters stick with the Americas, Mealy said in his presentation. Florida has an established trade relationship with Latin America. This is an asset to leverage when looking to do business with Asia.

    Asian companies, and the ASEAN market do not have these connections and eagerly want them. Partnering with a Florida-based business that can also connect them with Latin America would be a huge benefit for them. Florida companies can broker multi-national deals by focusing on geographic and time saving advantages when looking to Asia.

    Let’s say a Thai company has the opportunity to partner with a company either in Georgia or Florida. If they look at the numbers, Port Savannah is ranked fourth in the nation for container traffic. It is a huge competitor with Florida ports. Plus, the state of Georgia does more business with the ASEAN region. Florida exports are at $2.2 billion in goods and services, while Georgia is at $3 billion. More business is going through Georgia as major corporations such as Walmart, Lowe’s, IKEA and The Home Depot have built major import distribution centers there.

    So how can a Florida-based business compete? If the Florida-based company highlighted their ability for quicker re-exports through Miami – the closest port on the East Coast – the company would be in a better location for reaching both the Southern U.S. and Latin American markets. Here lies Florida’s competitive advantage: in providing value by being a regional hub for the Americas.

    According to a 2012 study by the US-ASEAN Business Council, the top three industries for exports to the region are electronics, chemicals and transport. In the Tampa Bay area, $300 million worth of products were exported. This trade supported more than 1,400 jobs in the state. In 2014, Florida exports to Singapore reached $534 million, and to Malaysia, $200 million.

    Mealy recommends looking to these markets as there is a Free Trade Agreement in place with Singapore, and Malaysia will soon follow once the Trans-Pacific Partnership (TPP) can be reached. Which countries are best for a business depends on the industry and product offerings. Also, a company should take into consideration the primary challenges to trade and the risks they are willing to take, as they may signal one market being better over another for entering the region.

    In addition to competition with other states, Florida-based business will be vying with companies from Asian leaders such as China, Japan, and Korea for sales contracts. Here it is important to differentiate your product and emphasize the Made in America brand. Depending on the type of product, it may be important to offer training within the sales contract. This upselling strategy has secured growth for many U.S. exporters in Asia, as most countries in the region have a low supply of highly skilled labor.

    By Emi Hanado, Global Chamber Miami

    Contact me to grow globally!

  • 16 Nov 2016

    FORMER HITACHI EXECUTIVE NICK HOWE TALKS ABOUT HIS INVOLVEMENT IN NEW STARTUP AREA 9 AND HOW IT COMPARES TO THAT OF THE CORPORATE WORLD.

    Global Chamber Miami Executive Director Emi Hanado spoke with Nick Howe, Area9

    Nick Howe had a somewhat strange career arc.  He is an engineer by training and by inclination – he graduated with a degree in Chemical Engineering in the UK then went to work for Bechtel Corporation in the petrochemical industry designing process equipment in refineries and oil platforms.

    At university Howe had been interested in programming and had an affinity for it.  Personal computers and CAD/CAM were making big inroads into engineering in the mid-eighties, and he naturally gravitated into it.  Throughout the 90’s Howe did pretty much every job in IT – high- and low-level programming, system and network management, application support and eventually moved in IT services with EDS, the global IT outsourcer.

    He ran a pre-sales team for EDS, which led into professional services and consulting with Hitachi, a Fortune Global 500 corporation ranked 37th. Howe built and ran the European professional services business for a few years, and at that point his career took its next major turn.  He inherited the customer education business, and found he enjoyed that part more than anything else.

    From there Howe was lucky enough to be offered a global role leading employee development, and also the customer and partner training business – which he did for 11 years, right up until the summer of 2016.

    Here’s a Q & A with Nick to get a sense of the contrasts between corporate life and that of startup life.

     

    Daniel LofasoHow did you get involved in Area9 and can you provide some background on what you and your team are trying to achieve?

    Nick Howe: After working for three global companies, the smallest of which had 45,000 employees, In the last few months I decided it was time for a change. I now lead corporate strategy for Area9 Learning, a small Danish software company with less than 200 employees.

    In my learning role at Hitachi I’d see how inefficient and ineffective most corporate education is.  Despite all the advances from the industrial revolution to the internet, education has hardly changed since Socrates, Plato and Aristotle.  Three years ago I discovered Area9, and quickly became their customer.  I was incredibly impressed by them and their products, and when I retired from Hitachi, Area9 offered me a role with them.  With Area9 Learning, we are bringing the power of neuroscience and computer science to revolutionize the way that employees learn.

     

    Please expand on this a bit more, and the adaptive learning approach Area9 takes.

    Every employee is different – different experiences, interests, schooling, attitudes – yet when it comes to training, companies treat everyone as though they are the same.  If you want to learn, say, project management, you get pushed through the exact same courses, no matter how much you already know.  This is frustrating for the learner and can cost thousands of dollars in lost productivity.

    Area9 Learning’s platform enables true personalization of a company’s training content – what is known as ‘adaptive learning’.  It adjusts in real-time to your knowledge, skills, and experience and teaches only what you need.  This dramatically reduces the time it takes to reach mastery, puts the power in the hands of the learner and saves the company money.

    Today we focus on a number of industries: Hospitality (hotels, food, beverage), Transportation, Energy, Retail & Consumer Goods, Industrials, and Automotive but also have clients in Healthcare, Technology and Sport.

    You can find out more at www.Area9Learning.com

     

    Hitachi is one of Area 9’s clients. It is not uncommon for startups to be created due to a need seen by an employee of a much larger corporation (but not met by that corporation). Can you speak to your experience and provide advice for any potential business owners who are thinking about exploring this path of entrepreneurship (creating a product or service that is complimentary to the corporation they currently work for/worked for)?

    The nature of large corporations is that there are always competing demands for resources, and all kinds of filters on what can and can’t be done. Something that is just incredibly difficult to get done at a large company can be trivial for a startup that can focus on it 100%.

    But – having the idea isn’t the challenge.  Execution and scale is the challenge.  Turning an idea into reality is difficult enough, but the thing that is really difficult in my experience is growing the customer base.  It is tempting to get excited by the first two or three customers, but scaling that up can be incredibly difficult. We saw that launching new products at Hitachi; it isn’t just a startup problem.

    And if you are in a company today, and you can see a glaring problem that you know you can solve doesn’t mean that the company will be bothered to fix it.  You have to be in the right place at the right time, with the right connections – and have luck on your side.

     

    In regards to Hitachi vs startup life at Area9:

    What parallels can you draw from the corporate world and startup world?

    People and mission. Ultimately all business, whether it is a 10-person startup or a $100b global corporation, is about people – how you treat your customers, your colleagues, your employees, and your suppliers defines your company.

    And if you combine that with a clear mission, the business won’t exactly take care of itself, but you will have a framework that simplifies decision making and leads to the right outcomes.

     

    What are the major difference’s you can draw from the corporate world and startup world?

    The most obvious one I’ve seen is a sense of urgency – virtually all startups have it, very few large corporations do. It sounds a little stupid to say that distance creates separation, but what I mean is that distance from the customer – created because of different functions, or geographies, or layers of management – often creates a sense of detachment and a lack of focus on what matters.

     

    How are processes different or similar at companies of these sizes?

    It is tempting to say that big companies have them, and small companies don’t. It may be more accurate to say that big companies NEED them.  Trying to get anything done at scale is at best inefficient and at worst impossible in a large company without great processes.

     

    What challenges does a startup face that you were not used to at the corporate level?

    It may be counterintuitive, but sometimes scale can give you flexibility. When it comes to spending, dollar amounts that can be a rounding error on a corporate P&L can be life and death to a startup.  In the corporate world, the scale allows us to take risks that would be virtually impossible to most startups.

     

    How does accountability differ at a startup level versus that of a corporation?

    If you lead the business correctly, there shouldn’t be any difference. People have an intrinsic desire to be accountable for their own actions, and to be given the opportunity to perform.  I’ve always found as a leader that people will live up to your expectations.  There is a temptation in large corporations for politics and bureaucracy to dominate, but transparency and delegation lead to accountability, not a loss of control.

    If you give people a sense of direction, the opportunities and the means to be successful, and ask them to be accountable for their actions, motivation naturally follows.

     

    There are a lot of former executives in the South Florida area:

    What are some reasons – beyond the obvious tax breaks and great weather – that you think you guys are moving to this area and getting involved in startups?

    The weather! Did I mention the weather? It has always surprised me that more companies aren’t based down here in Florida.  Florida has some of the best universities in the US, a great influx of talent from Latin America, and did I mention the weather?

    If Magic Leap can attract half a billion dollars of investment to the area, what’s to stop other companies?

     

    What does this mean for talent or resources?

    Hopefully, it won’t get as crazy as Silicon Valley – but it will mean that local talent won’t have to head to California, Boston, New York or Chicago for the best jobs.

    What do you forecast for South Florida’s resource pool in the coming years?

    That kind of depends on what how the universities respond.  Hopefully we’ll see lots of great opportunities for kids growing up here, but also an influx of talent from the rest of the country.

     

    Just for fun: You love Tesla and have even published a book, Owning Model S that is quite popular within Tesla itself. What motivated you to research and write this?

    I love technology, and performance cars. Tesla’s Model S is the perfect combination.  I was one of the first owners, and a group of us were learning as we went along because information from Tesla was so scarce.  That learning and research became my book, which I wrote primarily to help other people who were new to the world of electric cars.  It is great to get in on the front end of something that is going to be truly world-changing.

  • 21 Feb 2016 by Global Chamber

    The Panama Canal was a major logistical narrow for the American hemisphere since its establishment in 1914, the process of globalization has seriously gained strength through years and it looks to increase its power over the world's economies tied to the international trade that propel the comparative advantages of all countries in their prosperity. The Panama Canal brings benefits to the trade flow driving the Central American nation to expand its current water path connecting the Pacific and Atlantic Ocean creating a greater assistance by opening access to most of the world’s top ten international ports moving goods between the PortMiami and Asia as well as another major U.S. east ports.

    The Canal has been able to handle vessels up to about 5,000 Twenty-foot equivalent units (TEU) in the past but expansion will allow new-panama vessels with a length of 1,400 feet and cargo capacity up to 13,000/14,000 TEUs. Due my own experience living in Panama in 2007 I have been able to count 40 vessels from the Amador’s causeway making line to get access to the Panama Canal, so this expansion will reduce the locking time and thus significantly reducing the traffic congestion and the traveling time for ships crossing the narrow.

    It has encouraged the cruiser industry to use the Panama Canal since they could reach the boom of Asian travelers now. According a report released by Cruise Line International Association, the number of passenger from Mainland China has increased in 79 percent per year, between 2012 and 2014, from 216,700 to 697,000. The cruiser industry estimates this market will grow more than 4 million passengers over the next several years.

    Also, the expansion will change the PortMiami’s cargo pie chart in which shows their shipping traffic from Far East in 34% currently, since this port is ready for the new generation of the big ships with super post-panamax gantry cranes, one-dock intermodal rail service and the completion of the Deep Dredge Project with an investment of more than $1 billion.

    “PortMiami is now positioned as the most reliable, convenient and efficient global hub on the North American East Coast ready to service the world’s leading ocean carriers” PortMiami Director and CEO Juan M. Kuryla.

    Finally, the economic impact will be huge for markets involve in the theses projects by spring 2016, more business, tourism, new jobs, developments, research and investments boosted by the Trans-Pacific Partnership trade agreement. Definitely, this year will be an important footpath for the globalization and the economies of scale.

     

  • 17 Oct 2016 by Global Chamber

    Dear Global Chamber Member,

     

    In recent weeks, Hurricane Matthew and Nicole swept through the Caribbean and Florida, leaving devastation in their path. Haiti’s current death toll currently stands at over 1300 with a total of 1384 deaths caused by the hurricane. While Hurricane Nicole hasn’t caused any reported deaths, the destruction to property and the communities left by both hurricanes stands between $4 to $6 Billion USD.

    Global Chamber is represented in the Caribbean by Executive Director Dr. Ty Richardson, based in Trinidad and Tobago, and in South Florida by Emi Hanado, based in Miami, Florida. Both are currently spending time with Caribbean and South Florida communities, evaluating the damage, determining how to support and raising capital to contribute to the recovery and rebuild efforts.

    Leading Global Chamber’s efforts to contribute to the relief in the Caribbean and parts of Florida, Global Chamber Executive Director, Dr. Ty Richardson, is inviting members and sponsors of Global Chamber worldwide, to join the community, and donate whatever you can, and be recognized for your contribution.

     

    How to donate?

    It's simple, there are two ways to do it:

    1. You can donate with your Credit Card in our Payment Page (Click Here). After filling out all the required information, please make sure to add "Donation for Hurricane Matthew Relief Efforts" so we can adequately allocate the payment to our relief program. 

    2. You can donate by sending money to our office in the Caribbean through PayPal. To do so, send money to ty@globalchamber.org. It is important to add "Donation for Hurricane Matthew Relief Efforts" in the optional note space.

    Contribute to Global Chamber Caribbean’s relief efforts and be featured as a contributor on the Global Chamber’s Caribbean website and Global Chamber’s newsletter. Larger contributions will be featured on Global Chamber’s Blog with your company’s logo, story, contribution amount (or category) and how that money was put to use. No donation is too small. Let’s come together and contribute to this much needed effort.

     

    Thank you!

     

    Global Chamber® Miami

     

  • 21 Jun 2016 by Joel Fernandez

    Hong Kong Trade Development Council (HKTDC) and the Hong Kong Association of Florida presented Hong Kong: The Super-Connector seminar in Miami, FL in which it brought important speakers related to logistics, trade, and investments focused to the benefits of commercial activities with Asia-Pacific region and Mainland China through Hong Kong as a prominent international trade and financial center.

    During the event Joel Fernandez, Executive Director of the Global Chamber in Miami had the opportunity to introduce our organization to Francisco Sanchez, Former U.S. Under Secretary of Commerce for International Trade.

  • 15 May 2016 by Joel Fernandez

    Solar Impulse is UNSTOPPABLE... powered by  sunshine  and inspired by a global vision of clean energy worldwide. The future is clean! #futureisclean. Our team at Global Chamber is also UNSTOPPABLE... powered by 300+ days of sunshine per year at our headquarters in Scottsdale, Arizona. The future is global! #globaltribe. Global Chamber was pleased to be selected to have our members attend a VIP event with Solar Impulse pilots Bertrand Piccard and Andre Borschberg as they persevere with their big dream. Follow us onTwitter @GlobalChamber

    CLICK - Read more about Solar Impulse and Aviation History

  • 12 Apr 2016 by Joel Fernandez

    Let’s assume that your firm has a significant international presence. In that case, it probably has something called a “global strategy,” which almost certainly represents an extraordinary investment of time, money, and energy. You and your colleagues may have adopted it with great fanfare. But, quite possibly, it has proven less than satisfactory as a road map to cross-border competition.

    Disappointment with strategies that operate at a global level may explain why companies that do perform well internationally apply a regionally oriented strategy in addition to—or even instead of—a global one. Put differently, global as well as regional companies need to think through strategy at the regional level.

    CLICK - Read more about Regional Strategies for Global Leadership

  • 22 Feb 2016 by Joel Fernandez

    Ken Okaniwa is Consul General of Japan in Miami, he sees many trade opportunities linking Japan to South Florida. Miami and Japan excel at the higher technology of the industries and both have skilled labor as well as the good infrastructure to promote all kinds of activities from research and development to production and also the logistics to set them up.

     

    CLICK - Read more about Ken Okaniwa: The U.S. and Japan in The TransPacific Partnership Trade Agreement.

     

  • 03 Nov 2016

    Japan’s three biggest banks seeking business expansion in Africa

     

    The three mega-banks said they will expand their businesses in Africa, following Prime Minister Shinzo Abe’s pledge over the weekend to bolster measures to boost investment in the resource-rich continent.

    Sumitomo Mitsui Banking Corp., Mizuho Bank and the Bank of Tokyo-Mitsubishi UFJ are aiming to help Japanese companies tap into the market and support development of the corporate sector in Africa.

    Sumitomo Mitsui said Monday it has agreed with the Eastern and Southern African Trade and Development Bank to offer loans of up to $80 million to the African bank, in tandem with the government-backed Japan Bank for International Cooperation.

    The loan agreement is designed to encourage African firms to import machinery products from Japanese companies.

    Sumitomo Mitsui has also signed a business partnership with the African Development Bank and Banco de Desenvolvimento de Angola.

    Mizuho Bank said separately that it has agreed to form a business tie-up with six African financial institutions, including the Zambia Development Agency and the Development Bank of Southern Africa, with an eye to providing financial services know-how and promoting the banking sector in the region.

    Meanwhile, BTMU said it has reached a business cooperation agreement with the Kenya Investment Authority. With Kenya seen as an economic hub in eastern Africa, the bank plans to receive information about new investment projects and provide it to Japanese firms.

    At the Tokyo International Conference on African Development in the Kenyan capital Nairobi, which wrapped up Sunday, Abe said that Japan will mobilize a total of $30 billion in private — and public-sector funds to invest in Africa over three years.

     

  • 27 Oct 2016

    Connect to New Opportunities!

    Global Chamber® ­­­­­­Miami/South Florida Extends Your Reach to 500 Metros

     

    Hi, I’m Emi Hanado, Executive Director of Global Chamber Miami/South Florida.  Our team is excited to announce that Global Chamber has landed in South Florida. We have already started connecting member companies to businesses and organizations around the world, bringing new opportunities to them and the metro area.

    Global Chamber is the only organization in the world that helps companies grow beyond all borders - from every metro area into all other metro areas, collaborating with regional organizations around the globe to build new opportunities for them and their community.

    Contact me directly to learn more about how you can grow your business from and to metro Atlanta through global connections and our other services.

    Looking forward to working with you to grow globally!

     

    Executive Director

    Emi Hanado

  • 04 Jan 2016 by Global Chamber

    Hi, I’m Joel Fernandez, Executive Director of Global Chamber® Miami. Our mission is to extend your business reach to over 500 metropolitan areas around the world.

    As an Executive Director, I am leading the launch and growth of Global Chamber® Miami supporting our members on their global mission. Several years ago when I created Intradeservice, it was so hard to make business and it took us years to lead global connections, local chambers of commerce made their effort but slow. Nowadays, working and appreciating Global Chamber® potential could save us resources, time and effort in our mission. Take advantage and join our team to be global and UNSTOPPABLESM!!!

    Global Chamber is the only organization in the world that helps companies grow beyond all borders - from every metro area into all other metro areas, collaborating with regional organizations around the globe to build new opportunities for them and their community.

    Contact me directly to learn more about how you can grow your business from and to metro Miami through global connections and our business services.

    Looking forward to working with you to grow globally!

    All the best,

     

    Joel Fernandez

    Executive Director, Global Chamber® Miami

    Phone: +1(855)221-1023

    email: joel@globalchamber.org

     

  • 15 Mar 2016 by Global Chamber Miami

    Leading from a distance is one of the biggest challenges that we face in global organizations, cultural sensitivity, different languages, time zone, connection and technology are additional issues in a local routine leadership that could restrict the powers on our followers.

    Generally, leadership takes advantage in the host country where the headquarter is established since the proximity to the direct communication with executives establish a reference power, however organizations must be adapted to international environments and encourage colleagues to emerge between changes delegating activities and providing empowerment in challenging situations.

    Communication is usually affected by world time zones where it is difficult to find a time to exchange points of view or provide fluid ideas, emails feedback become slow and sluggish with extremely long issues to compensate the time in a communication limiting the efficiency and focus. In addition, the difference in languages is a barrier in which accents, translation and lack of English fluency cause frustration and misunderstanding. It results lack of direction and interaction among participants as well as limit the personal power that emerges from leaders in international branches.

    Also, Culture is a factor that often affects communication and behavior of critical situations in the organizations, there are cultures that assertion is considered a full understanding of the matter however it is a pause to continue listening about the issue, as well as silence, it can be considered rude or consent in which it really means the opposite. Likewise, expressions carry a sense of communication in some cultures, however it may be received as a rude and discourteous act in others, which is difficult to catch it by phone. This situation can misalign the scope of a common goal and ruin a leadership encouraging the coercive power.

    Many countries do not have an efficient telecommunication system and lack of technology to cope, communications are usually established by video conference or by phone and email, unfortunately these prevent empathy and others traits of leadership, decreasing the influence effectiveness on followers. Thus, It is important to create or match face-to-face meetings to encourage confidence, values, energy, intuition and emotions to emphasize a full understanding, not only through communication but also in perception.

    These are some of the main factors to face global leadership from a distance in which it could reduces the power of the influence on followers, resulting in the slowdown of changes and failure of a common goal. Thus, It is imperative improve communication increasing social powers to maximize opportunities to branch leaders and create inclusions for successful teams.

  • 07 Mar 2016 by Global Chamber

    Competitiveness is a determining factor for the progress of nations and the World Economic Forum tends to study this topic annually through the efforts made by countries, taking 12 essential pillars from business, government and society, in order to maintain the sustainability of each nation.

    The Global Competitiveness Report shows a ranking of 144 countries specifying a place that recognizes the performance of each country in creating greater productivity and how to benefit from their resources as well as how to analyze them. Many national organizations, governments, the United Nations and its agencies, the International Monetary Fund, private surveys, among others provide information as sources for this report.

    The Unites States of America

    The United States has made a wonderful effort as regards competitiveness since last year; this nation is still ranked as third in the 2015-2016 Global Competitiveness Index showing improvements in most of their pillars. In addition, its score increased from 5.54 to 5.61 as result of all their sub-index requirements.

    Predominantly, its 3rd pillar the Macroeconomic Environment had an outstanding improvement jumping over 17 points on the scale, due elements such as government debt stabilization, budget balance control, gross national saving improvements and best credit index performance all of which brought healthier economic results in competitiveness dissipating threats of a financial crisis. Also, its 8th pillar, Financial Market development, was benefited by this performance improving four positions.

    Another important pillar that improved was its 4th pillar being Health and Primary Education, moving 3 points on the scale due to national health results provided by the Obamacare reform, which created uncertainty over the industry last year.

    Last but not least, the 5th pillar being Higher Education and Training improved one point on the scale; STEM studies foundation influenced enough skills to propel innovation and sophistication factors that has made a strong effort educating this areas all over the country. This meant that the 12th pillar, Innovation, improved one place to be 4th due to STEM skills, efficiency of investments, infrastructure and combination of public-private collaborations.

    National competitiveness has improved overall; some factors have remained stagnant but the United States is going forward in most of its pillars propelling this nation as the 3rd most competitive country in the world. This year will be a challenge with some uncertainties and changes, however if this nation continues on its current path, the United States could reach the 2nd place in the ranking of the global competitiveness index for next year's report.

  • 28 Feb 2016 by Global Chamber

    The Foreign Exchange, also known as Forex is one of the most traded markets in the world. Here, traders expect a profit by speculating on the value of one currency against another. Therefore, currencies are always traded in pairs; the value of a currency unit does not change unless it is compared to another currency. This market has some key features executed by a lot of multinationals and it is getting amazing results to Wal-Mart, returning greater investments.

    Geography

    The Foreign Exchange Market has not operations restrictions on capitalization like others financial products. It is open 24/5 and it is the most traded commodity in the world with a higher average of US$5.3 trillion market, making 95% of business operations of all financial exchanges. This market unlike others lacks of centralized location, it is interconnected with the world in real time and offers to their participants, freedom and opportunity to trade their currencies at any time, anywhere in the world and unlimited profit.

    Wal-Mart with US$485.7 billion in profits operates through its capital flows between their subsidiaries participating in the International Foreign Exchange Market. Its geographical location in more than 28 countries in different continents allows to this corporation keeps more control of currency movement, returning their investments and speculating part of the money from sales, getting higher profits.

    Functions

    Commercial function. Forex markets purpose is transfer funds, or purchasing power, from one nation and currency to another. Then, Wal-Mart transfer purchasing power between countries and continents through its subsidiaries with monetary exchange to build, expand or renovate new stores in a specific country, buy products locally with local currencies paying wages and benefits for their local employees in each country and their expatriate staff and finally to take profits from one country reinvesting the money in another country, market or store and get benefits of investment performance.

    Compensation function. This feature provides a foreign exchange balance, to be affected by travelers, international trade or any other currency transaction, harmonizing the current supply and demand, as well as the surplus or deficit in the balance of payments. Wal-Mart with capital flow and international trade capacity, US$485.7 billion, it executes a global power of compensation in the trade balance of many countries; as well as over the flow of travelers in some of its 2.2 million employees. While it is true that 93% of Wal-Mart products are produced in China, and maintains 412 stores in that country, this nation is receiving a strong surplus in its balance of payments.

    Credit function. Generally, credit is needed when goods are in transit, and also allows buyers to get time to resell goods and make payments. Nowadays, 10% of global foreign exchange transactions are made by trade finance where Wal-Mart gets benefits from their manufacturers with 90 days of credit strategically, which it is usually paid to a commercial bank through a letter of credit.

    Market participants

    Participants are ranging from large banks and hedge funds to small and medium operators in the financial community. It brings attractive opportunities in the Forex market for a large number and variety of central banks, multinational corporations like Wal-Mart, big private banks, speculators, governments and financial institutions tend to participate actively generating large amounts of transactions in seconds.

    Transactions

    The Bond and Stock Markets around the world have a daily impressive volume of billions of dollars, but the Foreign Exchange Market has a daily volume over US$4 trillion. This can lead more trade opportunities. In addition, the closing of daily market transactions generates greater liquidity that encourages more investment in the market by increasing the daily volume. Generally, most Forex traders perform LOT routine transactions equivalent to US$100,000.

    In the case of Wal-Mart it is very difficult to determine an exact number of daily transactions because they depend on their strategies and commitments at the time, but we know that as they grow their international business, currently 51%, it will tend to greater obligations that forced him to invest more and more in the Foreign Exchange Market. However, its consolidated Forex income ranges from US$115 billion for the first quarter of fiscal year 2015 projecting US$118.1 for the first quarter of fiscal year 2016, It means that Wal-Mart seeks to boost its operations and impact with US$3.3 billion in the Foreign Exchange Market for the fiscal year 2016.

    Finally, Wal-Mart has perceived a big return of investments applying this kind of strategy throughout several years, they announce to close 269 stores in the U.S and internationally, it looks that they need to agglomerate more money to continue speculating in the Foreign Exchange Market. It is a privilege that multinationals take when they control the global markets. It is the McDonald’s case; following these steps they plans to close about 500 restaurants in 2016. There is not doubt that we will continue watching hard changes in multinationals looking for cash this year to dive into the Foreign Exchange Market.