International trade

Developments of internet technology and extensive deployment in business have meaningfully improved products and services innovation along with efficiency when it comes to trade. People all around the world are now connected through the Internet, with seamlessly and simultaneously coordinated demand and supply, all without the need of presence at a specific physical place or intermediary (distributors) as in the old times. The Internet platforms enable sharing information infrastructure and consequently lead to reduced information cost , as well as to matched demand& supply, creating in this way numerous business opportunities.

The appearance of e-commerce platform has enlightened the way for inclusive trade and economic progress. International trade is mostly influenced by the internet’s platform technical services, by standardized processes and also by business rules. The platforms have different functions like information matching, enabling transactions and payments, logistics and also comprehensive services (comprehensive behavioral health care services ).

A conventional understanding of the way in which the Internet affects commerce has its roots back in the 1990s when the doot.com experience began. From that time on, the Internet impact on commerce has grown and acutely changed. Beyond any doubts, the possibility of selling goods keeps its paramount importance. Notwithstanding, the key of this development is the fact that the Internet has shifted from being a storefront. Alternatively, the Internet is the platform for businesses to sell to customers both domestically and overseas, along with increasing productivity and opening new perspectives on competition. Understanding the Internet as a trading platform emphasizes its extensive economic potential, the fact that commercial opportunities are no longer limited to Internet companies, but available for different kinds of businesses ranging from manufacturing sector to services. These opportunities also mean that impediments have decreased, meaning that businesses are not restricted anymore to domestic markets, but are able to address any customer with Internet access worldwide.

At the same time, there are however a series of constraints which obstructs the possibility of the Internet to fully serve the international trade as a platform. These constraints refer to the entire Internet-commerce chain. Limits on the internet access are included (notably in the developing countries), as well as barriers to cross-border data flows, no matter the field, be it downloading music or accessing online services. From the consumer’s perspective, there are also risks to be taken into consideration, which refer to consumer protection laws.

A different type of internet (Joshua Meltzer)

The importance of the Internet from the economics and international trade perspectives need to be analyzed from a more recent development that stress the Internet’s capacities, often referred to as Web 2.0. It is characterized by innovation, collaboration, networking and innovative use of existing technologies in order to deliver ingenious offerings. With the help of Web 2.0 the economic activities have enlarged, now including concepts like big data, social networking and cloud computing. Currently, big data is one of the main concerns of businesses along with its interpretation and management. Data collected from different social platforms, web pages and so froth enable companies and entrepreneurs to classify, analyze and extract information about consumers and prospects.

The Economic Growth and the International Trade

The Internet has a direct influence on economic growth and international trade. Still, the data available is subject to different limitations and restrictions, such as the new General Data Protection Regulation (GDPR), with which individuals along companies need to comply. In addition, other limits refer to data availability. As an example, the data coming from international services trade does not disclose whether the service was delivered online or through traditional platforms. The Internet’s impact on economic matters reflect the role that is has on the productivity growth. Thus, the productivity of an economy translates into how much a given input is required to produce a specific output. Accordingly, this ability to increase the productivity is a focal point in driving economic growth.

Productivity growth can be increased in a number of ways. For some businesses it can be of help concerning the business processes, leading to a more effective management of production across business units. It also facilitates software updates and assistance, cloud computing, reducing IT infrastructure costs, improving at the same time supply chain management, as each part of the production chain can be updated in real time and production schedules can be adjusted to the location. Other tools, such as social networking enable businesses gather data to be used in reaching an efficient and functional market. Furthermore, the Internet has also the potential to the innovation factor concerning the production processes companies are seeking. This happens because companies can attain efficiency and effectiveness when it comes to delivering goods and services to consumers, including here the transportation system, the supply and logistics chain and also the entire flow of goods from suppliers to customers.

Hindrances to the Internet as a platform serving the International Trade

There are numerous barriers limiting the Internet to fully become a platform for international trade. Several also apply to the national commerce, including the matters of Internet, a protected payments system access along with practical delivery services. Other limits concern mainly the Internet enabled international trade and include tariffs on imports, impediments on market access to services imports, discrepancies in consumer protection laws and instruments for settling conflicts and pricey custom procedures.

Internet access is a major problem, even though gaps have been shrunk. While Internet access has grown enormously in the developing countries, there is a large discrepancy between developing countries and developed countries. Access to mobile phones and network is as well attached to the growing Internet access. This use of mobile phones to access the Internet makes room for frequent opportunities for entrepreneurs in developing countries, for example they can use them as devices for financial transactions, managing client databases and coordinating supply-chain deliveries.

Broadly, confidence in e-commerce is vital to building the Internet’s capacity to serve as a prime mover of international trade. Consumer trust in an online business results from the online experience, starting with the purchase and continuing with the quality of it, to the delivery time and different essential after sales services. Any faulty step can lead to undermining trust in the business.