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The importance of technology in international trade

Importance of Technology in International Business by Catherine Capozzi - Updated September 26, 2017 Technology has revolutionized the lives of consumers and businesses alike. The increased array of products on the shelves, the lowered cost of goods and services, and the ease of accessing information are just a few of the ways technology has enhanced society.

The field of international business is particularly sensitive to technological innovations. History In the early 1700s, international trade was impeded by economic forces that included wildly fluctuating currency exchange rates, handwritten correspondence via an unreliable postal service, and common supply-chain disruptions such as theft and vandalism of passing ships. Furthermore, as Douglas Irwin explains in a "Library of Economics and Liberty" article, imports used to be highly regulated and taxed to discourage countries from running trade deficits.

Competing Globally

Improvements in the legal system allowed for contracts with greater transparency and enforceability, and improvements in the mode of transportation allowed goods to be transported in less time. Identification The most important modes of technology in international business include electronic communication such as emails, texts, faxes and virtual conferences.

  • It cannot be denied though that technological threats to business are growing rampant, such as hacking and other malicious activities, so one has to be responsible enough in utilizing the power of technology;
  • Now we know and other business leaders are focusing on the needs of potential audiences and responding to their concerns and desires;
  • The good that technology brings has some excess baggage in the form of bad things that threaten to shake the business world;
  • It cannot be denied though that technological threats to business are growing rampant, such as hacking and other malicious activities, so one has to be responsible enough in utilizing the power of technology;
  • Security and Support With the automated processes that technology can provide, productivity reaches a higher level;
  • This is due to the minimal resources consumed in processing business activities, allowing room for better products produced and faster services delivered to more clients and customers.

Tracking methods for shipping and purchasing is another huge technological innovation, as it allows businesses to verify the delivery of goods and the quantity of inventory purchased. Electronic spreadsheets and databases are other inventions that allow international companies to manage and store their information with greater ease.

Communication The improvement in technology regarding communication is a linchpin of international business. The ability to instantaneously communicate with a manager in China or a factory in Singapore, for example, allows companies to expand overseas. Though multinational companies existed before the Internet, the ease of communication allows companies to outsource their operations with greater assurance: Video monitoring of factory and working conditions, inexpensive conference calls to consultants working in different countries, emailed reports to foreign vendors, and cheap long-distance phone calls are just a few of the ways technology has facilitated international business trade and operations.

  1. The technologies pertaining to other fields only pushed business further. Technology Makes International Trade Possible for Developing Countries October 1, 2007 By Pam McLaren Throughout the ages, merchants looked for trade routes and hired ships or pack animals to get their merchandise to customers.
  2. Technology as a Business Necessity The role of technology in business caused a tremendous growth in trade and commerce.
  3. Information is also stored with ease and integrity.
  4. A Link to the World Business involves communication, transportation, and more fields, making it a complex web of processes. This is because technology gave a new and better approach on how to go about with business.
  5. In turn, they are looking at the world — not just the country or continent where they are located — as their market. Businesses have to be able to get their products to their customers.

Logistics Multinational corporations have much more complex supply chains than local brick-and-mortar businesses. International companies often have vendors, factories, customers and consultants in different parts of the globe. Keeping track of how a product is developed, manufactured, shipped and purchased can involve hundreds of steps in several countries.

  1. The said information can also be instantly retrieved and analyzed to monitor trends and make forecasts, which can be crucial in decision-making processes. Electronic spreadsheets and databases are other inventions that allow international companies to manage and store their information with greater ease.
  2. The said information can also be instantly retrieved and analyzed to monitor trends and make forecasts, which can be crucial in decision-making processes.
  3. International companies often have vendors, factories, customers and consultants in different parts of the globe. Business concepts and models were revolutionized as a result of the introduction of technology.
  4. The increased selection lowers the cost as these foreign companies bid against the others for contracts. For instance, technological innovations enable a clothing company to choose from textile plants in Vietnam, Singapore, Taiwan and several other locations.
  5. The field of international business is particularly sensitive to technological innovations.

Technological innovations streamline the supply chain by allowing up-to-the-minute results on the assembly of a product, and global tracking technology highlights where the product is moving. Benefits Technology allows companies to produce products for less money.

Importance of Technology in International Business

Furthermore, companies have a wider selection of vendors from which to choose which lowers the cost as well. For instance, technological innovations enable a clothing company to choose from textile plants in Vietnam, Singapore, Taiwan and several other locations. The increased selection lowers the cost as these foreign companies bid against the others for contracts.

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