Understanding the role of Technologies in international trade

Application of scientific knowledge for practical purposes in industry is the way to use technologies in international trade, there are various parameters which shape the trade flows including trade policies, changes in nature and location of client, technology is an important underappreciated in trade flows.

Digital revolution enabled the companies to interact and communicate well with trading across the national borders, Exchange of goods and services globally existed before but technology vastly improves the coordination and communication between the seller and buyer. Digital platforms, Blockchain, Internet of things (IOT) are useful in reducing the transaction and logistics costs, Net impact of the entire wave of new technologies is unclear but the impact can be seen vastly in the production, coordination, delivery of goods services etc. Digital technology, automation in industry brings the value addition in manufacturing of goods and services of exports.

Digital technologies are the combination of electronic tools, systems, devices and resources which generate store and process the data, by using social media, online sites, multimedia, mobile phones, tablets, It has been changed almost every aspect of human life from last 15 years. Everyone needs to learn how to manage the digital technology by acquiring knowledge, skills, and abilities for responsible use of Digital technology, through digital technology exporters are able to acquire a better understanding of organizations and progression of the work of trader.

International trade is the buying and selling of goods and services in international markets or it may defined as exchange off goods and services among the countries. International trade boost the exports in country and job creation.

Exchange of information and communication using Digital technologies affect global trade patterns.

Trading services via Digital Platforms:-

It is easier to promote and give services online Digital platforms which allow users to find service providers from all over the globe, Digital platforms using Digital technologies connect the customers and service providers.

Impact of 3D printing technology on global trade:-

3D printing technology allows the creation of objects by printing successive layers of different materials like plastic or metal, it requires less labor and reduce the need of import.

Business Promotion through social media:-

New services and goods can be promoted online using facebook or other social media by creating a business profile.

Payments by online methods:-

Transfer of payments online made the process much easier as everyone has installed Bank account in their phones, Access of business accounts increased by 20% between 2011 – 2014.

The Government has launched Digital platform to avail the benefits –

The Indian Government has launched various online portals for the application and issuance of various licenses and import licenses, under incentive scheme exporters can do the application online and shall attach required list of the documents after uploading the scanned documents, Government issue the benefits license after checking all the data and reviewing the application, there is MEIS Scheme for the goods exporters under which exporters can avail the benefits of 2% to 5% on the FOB value of exports, they are eligible to avail the benefits from last 3 years with late cut clause.

SEIS Scheme to provide the incentive on the FOB value of exports and on the net foreign exchange earned on notified services.

Technologies used in trade logistics and transaction cost for boosting goods trade:-

Traders can lose time and money in customs processing or international shipments delay, payments delay without using technologies. Logistics technologies also continue to improve, internet of things can track shipments in real time.

(Indian Government launched RoDTEP scheme to replace existing MEIS Scheme in phased manner.)

Automation in manufacturing of goods for export:-

Automation diffusion and artificial intelligence reduce the labour cost, easier access of resources, maintaining quality of goods.  Service exporters are also using automation in their workflow – call centre, help desk services, virtual agents etc.