Importance of technology for foreign trade

Technology is supporting governments

Importance of technology for foreign trade

Technology plays an essential role in globalization and foreign trade, through its impact on communications, finance, and logistics.

Never before has it been so easy for a small or medium-sized company to sell abroad.

Technological advances facilitate communications, improve productivity by automating processes and, at the same time, expand and streamline financial services.

Likewise, the ubiquity of the internet, the proliferation of mobile devices, and the digitization of logistics allow all companies, large and small, to open a gateway to customers through an e-commerce site, no matter where they are located. find.

In a broader aspect, technology is supporting governments by stimulating the growth of their economies and creating jobs. Hence, the competitiveness of countries is based on their rapid adoption of new digital platforms and processes.

Here are five ways that so-called information and communication technologies (ICTs) are supporting economic development and fostering innovation:

They Increase The Labor Market

Technology plays an essential role

The technology industry is creating direct jobs at an unprecedented rate. Big tech companies like Google and Apple are attracting more and more skilled employees. Both to their US headquarters and to research and development and production centers around the world.

To this is added that they are highly specialized jobs with high salaries that the same law of supply and demand is pushing up.

Likewise, the large number of employees that are concentrated in the industry creates a demand for goods and services around it that generates jobs for many other people, creating a network of wealth distribution.

They Contribute To GDP Growth

Thanks to the rise of electronic commerce. Whether through digital advertising or the sale of products online. The Internet drives the economic growth of nations.

According to a study by the consulting firm McKinsey, in 13 countries studied (Germany, Brazil, Canada, South Korea, China, United States, France, India, Italy, Japan, United Kingdom, Russia, and Sweden), the Internet increased GDP by 3.4 percent, on average.

They Spawn New Industries And Services

The internet and mobile devices have stimulated innovation in business, creating previously unimaginable products and services.

Cloud computing is one of them, which, in turn, has spawned a variety of businesses based on the information storage and accessibility capabilities it enables.

Another is mobile applications for smartphones and tablets, which now offer users a host of features that make their work and lifestyle easier.

They Make The Work Dynamic Evolve

The outsourcing of administrative activities and collaborative work, which allows remote work, are transforming the work environment. Companies no longer require all their functions and employees to be concentrated in one place.

This flexibility in terms of the place and hours of work of employees is driving growth in productivity and, therefore, in the profitability of companies.

Likewise, financial transactions and the exchange of digitized information. For example, streamline payment and collection functions, as well as accounting and fiscal activities of companies.

Added to all this is the ease with which entrepreneurs can access advice and information in developing their business. As well as the sources of financing and the markets where they can market their product or service.

They Encourage Innovation

For each new tool or technological platform, several new ideas arise on how to take advantage of them to improve economic, financial, or commercial activities.

This has promoted international trade, the efficiency and automation of processes. The relationship between companies and their consumers, and the competitiveness and profitability of companies.

From CRM platforms that improve customer relationship management, ERP systems that reduce costs through optimal resource planning, and electronic accounting tools that enable effective cash flow management, advances in technology have meant substantial cost savings for businesses.

On the other hand, innovations in hardware allow greater precision and optimization of processes. Reducing operating expenses, improving product quality, and increasing their value for the consumer.

An inclusive economy

The best thing that technological advances have done for the international economy is to include entrepreneurs and SMEs in the dynamics of foreign trade. They are now in a position to bring their solutions to those who need them, no matter where they are.

With the facility that allows them to expose their goods and services in other markets. Apart from expanding their customer base, they can free themselves from the pressures and fluctuations within their countries and regions.

With the simple fact of having access to the internet. They can now establish an e-commerce site that connects them with consumers all over the world.

And advances in financial services and logistics and transportation make it possible for the relationship between sellers and buyers to flow smoothly and the commercial transaction to be executed quickly.

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