22 International financial markets. Carrefour the French Supermarket chain has established retail outlets worldwide. These outlets are massive and contain products purchased locally as well as imports.

As Carrefour generates earnings beyond what it needs abroad, it may remit those earnings back to France. Carrefour is likely to build additional outlets especially in China.

a Explain how the Carrefour outlets in China would use the spot market in foreign exchange.

b Explain how Carrefour might utilize the international money markets when it is establishing other Carrefour stores in Asia.

c Explain how Carrefour could use the international bond market to finance the establishment of new outlets in foreign markets.