The US retail giant, Walmart, already has two retail outlets in Shenzhen, China; with a population of about 36 million people. The success of this outlet is, among others, supported by imported products and products purchased from local sources. The profit earned is sufficient for Walmart's operational needs in Shenzhen which can be deposited to the parent company in America. Furthermore, Walmart will plan to add more outlets in Shenzhen and other cities in China.

By looking at the exchange rate of the Yuan against the US Dollar and the current inflation rate in China, how do you assess the investment feasibility of adding a new Walmart outlet in China?