Changes in International Trade
According to Jordan Sudberg, changes in international trade have come to a new level because of globalization. With the changes made in international trade it has become easier for countries to import and export goods from one another without the cost of the products being affected. A country experiencing rapid economic growth can import more goods from other countries, which will help them develop its economy. Dealing with tariffs is also a lot simpler in today’s world, according to Sudberg, so this makes imports and exports between countries easier than before.
1. The Rise of Developing Countries
The rise of developing countries causes the beginning of globalization. As these countries got richer, they started to buy more products from other developed countries, providing a better exchange value. This is good as it helps developing countries earn more income, allowing them to provide more services and growth for their economies.
2. Artificial Intelligence and Automation Technologies
Another change that has helped international trade is the change in automation of products. Before automation technologies, products were made by hand, allowing more time for trade. As the manufacturing process was changed to automated, the time taken to produce a product was reduced, and therefore, less time could be spent on importing or exporting goods. Trade improved because less money was spent on handling orders and preparing items for transport, which allowed more profits.
3. Changes to Trade Policies
Changes in trade policies are also due to the globalization process. As countries become more global, they realize that they can make a better exchange value by not just trading goods but also by trading services. When one country starts to provide a service, such as financial services, this allows the country to start trading more goods, and trade expands further.
4. Increased Competition
A country’s growth and prosperity depend on the amount of competition they have between companies. As these countries become more global and developed, they will grow even more, so the competition will get stronger. Competition has been proven to be a great way to spur growth in many industries, including logistics.
5. Political Sanctions
Sanctions had been used as a way to stop countries from doing illegal activities and stop trading. Sanctions were seen as a great way to stop trading because they were also used to block countries from trading with each other, this meant that the country in question had less money, and therefore, growth was limited. In today’s world, sanctions are ineffective, and countries continue to trade with their enemies, according to Jordan Sudberg. This is because sanctions are not always enforced correctly; they are sometimes lifted or ignored.
Different ways have improved global trade. The main reason for this is the increased movement of capital from one country to another. This has helped both sides become more internationally aware of each other and more willing to trade. The benefits for the developing countries are greatly in favor because it provides new opportunities for a better world economy and a step forward in industrialization.