The recent expansion of technology has contributed to the growth of international business
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Show The global trade system has failed to take full advantage of cutting edge technologies that could make trade more efficient, more inclusive, and less costly Image: REUTERS/Edgar Su Ziyang FanHead of Digital Trade, World Economic Forum LLC Stay up to date: Trade and InvestmentLicense and Republishing World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. The views expressed in this article are those of the author alone and not the World Economic Forum. Global Agenda The Agenda WeeklyA weekly update of the most important issues driving the global agenda SubscribeYou can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.
Partner Contribution - Indevaldi Apr 15, 2021 Expanding into new and foreign markets is a complex enough undertaking without worrying about your technological systems. Since many nations in developing and emerging markets are still relatively immature technologically, companies need to know that their ICT can be relied upon to support their business, no matter what the industry Eighty-one percent of companies consider technological progress the main factor of change for the next 5 years, while 50 percent of the world’s leading manufacturing companies invest in IT applications and infrastructure to help them be more flexible and agile. Technological change reshaping business growth and expansion will only intensify as artificial intelligence, advanced robotics, and cyber-physical systems take the digital revolution to another level. So it is to technology that companies must turn to help them overcome the challenges of expanding in new markets. Technology in its fullest understanding is the capability that leads to outcomes, whether tangible or intangible. For this to happen, typically, certain skills and procedures are required. Early advances in human history are closely associated with technological progress, specifically with the history of energy. Yet, it was the dawn of the printing press towards the end of the Middle Ages which spurred the Renaissance, and which eventually led to the first recognizable techno-economic revolution of the modern age. Better known as the Industrial Revolution, this era was characterized by the mechanization of the cotton industry and the construction of canals, waterways, waterwheels, and turnpike roads. Since then, certain key trends associated with technological progress became clear:
HOW TECHNOLOGY ENABLES GLOBAL EXPANSION What is the importance of technology in international business?Telecommunications technology is what makes running an international business doable. It's necessary for sending invoices, dealing with customers, communicating with suppliers, and keeping in touch with employees that may live in other parts of the world.
How does technology help in business growth?Technology helps increase the efficiency of systems, products and services. It helps track and streamline processes, maintain data flow and manage contacts and employee records. In fact, this increased efficiency in operation helps reduce costs as well as enable the business to grow rapidly.
What are the impact of technology in global business?Combined with impact of open borders, technology allows companies to gain influence and economies of scale that further disrupt the economies of many nations. In some cases, the winners in this disruption are advanced economy companies, but in a number of cases challengers emerged from less advanced countries.
How does technology affect international trade?Technology and International Trade: The Pros and Cons
Technologies such as artificial intelligence (AI) and blockchain will impact the future of trade as these advancements can vastly improve the aggregate supply for many industries, promoting lower prices and higher output.
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