Nukee, a United States shoe manufacturer and retailer, established two retail outlets in the city of Shenzen, China, which has a population of 3.7 million. These outlets are massive and contain products purchased locally as well as imports. As Nukee generates earnings beyond what it needs in Shenzen, it may remit those earnings back to the United States. Nukee is likely to build additional outlets in Shenzen or in other Chinese cities in the future.

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