Trade Winds: Shaping the Future of International Business

Trade Winds: shaping the  future of international business

Historically since 1865, Britain was the leader in globalization as it created various specialized colonies for production and sale of its produced goods and service which however greatly changed after the World War II, which brought United States to the forefront of industrialization, this was the start of Wave to of globalization where most of the countries were keen to join forces to grow each other. In 1990s with invent of internet, the globalization has now taken a new turn with the new form of globalization and formation for multinational conglomerates that now rule the world and define many a times the policies of the trade for different nations as with them the future of a nation is dependent whether a nation will have the quality of life that its citizens demand.  The Wave three of the Globalization is today through 2050 is largely dependent on international trade barriers, improved communication between cultures, levels the playing field for entrepreneurs and startups, and forms the foundation for an “always-on” global economy.  As per the report the world trade is expected to quadruple in value to reach $68.5trn of goods.

Although the world economy continues to feel the repercussions of the global financial crisis the future is looking brighter and the growth will happen at more stable rate till 2050 attributing factors will include growth of the population which will lead to increased consumption and increased GDP. Bridging gap of the distance through cheaper transportation and technology will help bridge the gap. Industrial evolution: digital innovation and the drive for sustainability Digital disruption has upended the traditional business models of virtually every industry, which will be even further changed with the mobile, cloud and sensor technologies evolve and smart connected products. This will enhance the experience of the users and also increase the benefits to the companies with Just in time inventory, prevent losses and increase sales through personalized global sales identify consumers globally of the products. Also the reduction of the costs for the manufacturers will happen through automation, improved supply chain management, reduced transportation costs, reduced energy costs. Major sale source of all products will be through the internet, which will make borders more and more obsolete. This will increase competition globally and only the companies that adopt highly technology friendly, interconnected devices will be able to sustain the change and others will be left in history.

As we analyze the global trade trends with the different countries using the tool provided we see that the Vietnams exports will be increasing to one of the giants of global economy that is India, also Ireland will be increasing its exports to Vietnam, Bangladesh will be exporting more to UAE and to complete the cycle Bangladesh will be exporting more to Vietnam. As we see the flow of good and flow of money from one region to another, we will see improvement of quality of life of the so called “Third world nations”. Overall up to 2050 we see the following countries increasing their exports exponentially to the different countries “China, India, Vietnam, Bangladesh, Ireland” hence using their human capital more and more to produce goods and services of higher quality.