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Lucubrate Magazine, January 20th, 2023
Digital trade is the online exchange of digital information, such as data and electronic files. It is an important development for the international economy as it creates new business opportunities and promotes economic growth. At the same time, digital trade creates new challenges for global governments as it increases cross-border interactions that can be detrimental to individual countries.
Digital trade contributes to global economic growth.
Digital trade is facilitative and therefore contributes to global economic growth. Commerce transfers value or products between countries or individuals via the Internet. Examples of digital business include exporting products or offering services to another country and importing goods or services in return. Digital trade makes it possible to conduct business transactions without physically travelling to another country. Digital commerce can be advantageous since time and cost constraints may prevent international business travellers from conducting transactions themselves. However, despite its advantages, digital trade is still developing; it could be more efficient than in-person business.
A report published in January 2023 concludes that digital trade is transforming the international economy [1]. The report state that it is changing the way we bring goods and services to market; the nature of products (for example, as many are digitized or hybridized with online features); how we develop and produce products (for example, via improved data resources and ongoing international collaboration); and the conduct of business operations. Highly digitally intensive services are rising as a share of the overall services export mix.
The Impact of Digital Trade on the Way Goods and Services are Marketed
Digital marketing refers to strategies, concepts and applications that use digital data to communicate with customers. Essentially, digital marketing promotes products or services through digital networks such as the Internet, mobile apps, social media and video games. Essentially, it’s how companies communicate with their target market and target demographic groups. Digital marketing has disrupted the way shoppers acquire products and services. However, it would be wise to discount traditional marketing methods by first ensuring that those methods are efficient in comparison.
Digital marketing has revolutionized how we market and promote goods and services. We use digital marketing is used to promote products and services online. For example, some companies use digital marketing to promote their brands on social media sites such as Facebook, YouTube and Twitter. Digital marketing also includes direct interaction between companies or direct interaction between customers and companies through chat features on websites or mobile apps. Digital marketing allows for real-time feedback and interaction between customers and companies. It’s also much cheaper than traditional marketing methods such as television advertising or direct contact with salespeople.
Digital trade in the digital environment
Many consumers have become accustomed to online shopping in a digital environment, particularly in countries with strong digital marketing capabilities. In these countries, they conduct online transactions, necessitating in-depth digital marketing skills among consumers and vendors. Consequently, many businesses in high-digital-marketing-capabilities countries focus most of their efforts on customer retention rather than new customer acquisition. We should equip enterprises in these countries to handle all customer service issues online without requiring in-person interactions.
With the growth in this trade over the past two decades, it has come to the attention of regulators. Oversight has increased as regulators seek to respond properly to growing concerns about privacy, consumer protection, cybercrime, administrative transparency and facilitation, and national security, among other issues. But, in some cases, the result is an international regulatory patchwork of unnecessary complexity, inconsistent approaches, uncertainty or outright discrimination against foreign suppliers [1].
Regulation of the digital trade
Digital trade has transformed the global economy at a rapid pace. The business grows faster than the real economy and creates more employment opportunities. However, the company is still developing and needs some help.
Digital trade is growing faster than the rest of the economy. Companies, governments and individuals are trading information and goods digitally. This digital trade makes up the largest part of the global economy and will continue to grow in future decades. Digital commerce is more efficient and effective than physical trade. But it’s also easy to manipulate. Illegal online trading fall outside the economic growth statistics. Problems arise when digital business crosses over into real-world consequences.
The global digital economy was initially lightly regulated. However, over the past two decades, it has become the focus of increasing regulation. Often regulators seek to respond appropriately to growing concerns about privacy, consumer protection, cybercrime and national security matters, among other issues, taking account of international standards, guidance and best practice, as well as considering the experience from existing accords. But, in other cases, unduly trade-distorting provisions may emerge from unilateral or poorly coordinated international processes. The result can be a costly regulatory patchwork of unnecessary complexity, inconsistent approaches, uncertainty or outright discrimination against foreign suppliers [1].
References
Lucubrate Magazine January 2023
The illustration on the top of the article: Adobe Stock
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