Influences of the inflation rates on global business operations and performance

The consequences of two contradictory obscure gaps in the international business literature subject multinational companies to unnecessary currency exchange risks to both their cash flow and inventory turnover from unexpected inflation. These two contradictory obscure gaps in the international business literature can be easily triangulated. These two contradictory obscure gaps have not been addressed to date in the international business literature in spite of the many robust Peer Reviewed Journals which discussed issues in international business. The international business researcher has investigated these issues. One hypothesis advocates that emerging market countries should adopt a Peg Currency Exchange Regime to lower inflation in their countries but inflation will only be lowered if the currency value being pegged is depreciating. The other contradictory obscure gap in the international business literature does not explain that the emerging market countries which adopt a Peg Currency Exchange Regime automatically disqualify and shut themselves out of the international capital financial markets.