How tech continues to transform international trade
Faster shipping, more efficient production techniques, and instant communication – tech is one of the key reasons for the exponential growth in global trade during the second half of the 20th century. This upward trend is not over yet either – despite geo-political or economic threats in recent times. New tech and digital advances bring with them yet more potential to keep global trade on an upward trend – and here are some of the most notable game-changing solutions.
Artificial intelligence and machine learning
As a term, artificial intelligence (AI) is now more than half a century old. But it’s coming to the now as an integral pillar of the ‘Fourth Industrial Revolution’. In its physical form, it – together with machine learning – could truly revolutionize international trade. The potential applications are far-reaching too. From instant document translation to port traffic management and robots that control warehouse stock, AI can streamline all aspects of the global supply chain.
Ease of access to information from markets
The ability to communicate with people in real-time across different continents and time-zones has made our planet much smaller. Digital, satellite, and broadband technologies do more than bring people together. The advances have created, and continue to create, a more transparent and free way to access information for market activities such as stock indices and forex trading in an instant. For businesses, this can mean faster and more proactive profit-making decisions.
3D printing breaking down more boundaries
3D printing still has great strides to make – but it’s already being viewed as a potential threat to global trade as we currently know it. ING predicts that advances in 3D printing tech could slash cross-border trade by as much as a quarter in the coming 35-40 years. If adopted on a popular basis, 3D printing solutions reduce demands on labor – and the need to import goods from an overseas market. And this will be good or bad news for businesses on a sector-by-sector basis.
Mobile payments speeding up transactions
The advent of mobile payments is already an increasing force for social good. The tech driving its capabilities is helping millions of ‘unbanked’ people in poorer nations of the world to access finance through mobile phones. With more tech giants becoming providers in this space, trade can be enhanced as payments are made quicker. Half of all Asian companies are now eyeing a switch to non-banks as fast, digital settlements prove more attractive in the business world.
Global trade: What is the future looking like?
The broad scope of tech and digital communications shows just how many new and yet-to-be-discovered opportunities there are for international trade. These opportunities are not without their challenges, however. As ever, it requires cross-border cooperation and agreements. And this also creates new questions from a regulatory point of view. But the foundations are being laid – and the ongoing evolution of trade rests on how this tech can build from the ground up.
