INFLATION & ETHICS
In order to properly analyze the effect of inflation on international business, one must understand the effect that inflation produces on economies in general. Inflation always has a detrimental effect on whatever economy in which it occurs. From a very basic conception, the notion of inflation is defined as an occurrence that takes place when there is a surplus of money printed. Because there is too much money in circulation within a particular economy, the value of that money decreases. The greater the rate of inflation, the lower the value of money within an economy is. This concept directly relates to international business in a variety of ways. International business is largely facilitated though the valuation of money of different countries. The currency of some countries has greater value than others. For the most part, however, by assessing a rate of comparison between the currencies of two different countries, a certain amount of the currency of the lesser valued country's money can equal that of the higher valued currency. These valuations help to account for international trade and help to explain the fact that inflation produces a strain on the normative values of currencies of different countries, and effectively devalues what is swiftly becoming a global economy/marketplace.
One of the most palpable ramifications of inflation on international business is that it greatly reduces a country's ability to pay debts with its own currency (Barron, 2014)to another...
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