Technology refers to the use of technological understanding during hands on practice when working. International trade refers to the exchange of capital, goods and services across the borders or the geographical territories of a nation. Technology holds a significant position in international trade. In our society that is constantly developing in a astonishing rate, we can give credit to the introduction of technology. Companies use technology in many aspects of their business for example, for production, communication, research and for security as well.
Use of technology
The need for human work in production is greatly reduced as companies can now make use of information technology in the form of control systems and input them in machines. Then, machines will work accordingly based on the procedures that were keyed into them. The introduction of technology in the form of spreadsheets also affects trade as a company would be able to consolidate their data easier.
The use of spreadsheet in business reduces the workload and complications of normal procedures such as book-keeping. In the spreadsheet, you are able to input all your information and access them again by just clicking a few buttons on your laptop.
The inventions of different modes of transport has also greatly affected international trade by providing shipping options by air, sea and land. In air transport, you have planes. By sea, you have ships. And by land, you have options for courier service. All these modes of transport would not happen with the participation of technology. Technology in transport serves as the main reason why goods we order from a foreign country would be able to arrive at our doorstep. -Security
Technology in security is important to international trade as confidential information would be well kept with the creation of password. Having a competitive edge is very important when doing business in modern society therefore, security in businesses are important to prevent others from stealing ideas.
Impact of technology in International Trade
1)Ease of communications
With the introduction of technology, companies can reach out to almost anyone with just a few clicks on their laptops all thanks to the internet. Suppliers, customers, basically anyone is reachable. With platforms such as emails, video conferencing and social media, companies are able to reach out to a bigger group of people though networking technologies that narrows the gap between people even if they are on either sides of the world.
2)Ease of publicity
With softwares such as photoshop or other photo or video editors, companies are able to reach out to more people by appealing to them about their products visually. These softwares allow greater description of products and allow companies to produce clips which can be used to promote their products which will in turn attract customers.
3)Market research & Expansion
With technology, companies can now easily find out information on the latest trends and information about the economy in any country. This will thus allow companies to better plan the company’s direction as well as future plans for example possible expansion plans. And also through technology, companies that are planning to expand can also view possible location to have their overseas headquarters as well as outsource and employ locals without having to constantly travel to the country of expansion as there is video conferencing the company can use for interviews and also platforms to view land or workspaces.
As mentioned above, technology can be seen everywhere. And as most things need some form of technology, we rely on technology a lot. For example if someone is using his phone and one day the wifi modem service is down, he/she will most probably not be able to go through a day easily without wifi as wifi enables us to send messages, use social media and surf the net. Same situation in a company, if the wifi is down, it would be very difficult for a e-commerce business to operate as its transactions are mostly online.
2)Loss of jobs
As more and more machines and new technology being introduced to the industry such as artificial intelligences, the need for human work becomes lesser and lesser. This thus results in a loss of jobs for certain industry sectors. Some examples are factory worker. As machines are introduced into factories, these machines can be programmed to do the same job scope as a human can therefore some people may lose their jobs as a result. This is also evident in some situations where you are calling a customer service hotline of a certain company and you realized that you are actually talking to a customer service officer that is automated. These are examples in which technology can be deemed as a negative impact of technology in international trade.
In our fast-growing society, technology is evident in many aspects of our lives. From wifi, phones, laptops, transport and even machines, it is as though our lives revolve around technology. In international trade, technology is also evident as companies use technology for almost everything, from factory production to even customer service. While technology has brought about numerous advantages for companies, it also has its downsides. Some positive impacts technology has brought about is how easy it is to be in contact with people as well as easier methods to keep up with the demands of the growing market. Some disadvantages that technology has brought about are unemployment and dependence on technology. I would like to end of my report with a quote by Christian Lous Lange, “Technology is a useful servant but a dangerous master”.