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8 Benefits of Technology to International Trade
Technology has always been involved in every aspect of human life, but the recent
discoveries in technology are superbly overwhelming in international trade. It has also
transformed the way we do business across the border.
How easier can it be when you sit in the comfort of your home and close deals with
your foreign trade partners? Isn’t by nature, it’s the scientific research that birthed
technology.
The benefits of technology to the global market are numerous, we’ll take a closer look
at eight major ones and how they will continue to transform international trade
beyond imagination in the years ahead.
Increases Number of Exports
Technology has made it easier for suppliers around the world to easily join the global
online marketers to showcase their products. In exchange, potential buyers don’t have
to see the supplier physically, thereby saving money and leading to an increased
number of exports in the most time-effective ways.
Increases The Volume of Trade
When trades are closely faster, it’s most likely going to lead to an increase in the
volume of trade, this is one area technology has been beneficial to international trade.
Increases Product Variety
In the supply chain, buyers have access to a wide variety of products that meet their
production needs. For instance, cashew is cultivated in almost every state in Nigeria,
but over the years, we’ve seen foreign buyers’ preference for cashew nuts from Oyo
State.
Increases Inflow of Forex of a Country
Unlike in the 90s when there was a limitation to access to technology, the 21st century
technological advancement in international trade is thrilling and profound.
For countries that export more, they can balance their foreign exchange earnings and
imports.
Foreign exchange earning is a must for a country that wants to effectively manage its
forex market. When there is an imbalance, its FX market could be hit by a crisis.
Job Creation
Just the way the innovative minds are changing the world, technology has created
opportunities for app developers and individuals who can offer exports and imports
services
Foster Cooperation Among Trade Partners
According to the World Bank, international is one of the ways to end global poverty.
“Countries that are open to international trade tend to grow faster, innovate, improve
productivity and provide higher income and more opportunities to their people.”
Technology has made more impact in this direction whereby trusted partners chat on
apps, exchange contact details and even go beyond the online to become friends.
Simplifies Tracking And Delivery
Right on your smartphone, technology has made it easier to track your order from
takeoff point to the ports and the till it’s been dispatched to your doorsteps
Simplified Export Certificate Application
Some years back, application for an export licence in Nigeria was done manually,
whereby you would have to visit the office of the Nigerian Export Promotion Council
(NEPC), today, each is done online and in less than 48 business working hours, your
export licence would be delivered to your portal where you can print. Thanks to
technology.
