The world is interconnected and this plays a major role. Countries rely on each other for sourcing of goods and services and thus when inflation hits a country, it affects the prices of importation of goods leading to higher cost for the other nations and can contribute globally. Also, currency exchange rates can influence inflation such that if a country’s currency depreciates drastically, the cost of imported goods also increases. Trade relationships, foreign investments, financial flow, amongst others link countries together and can contribute to a global economic downturn.