Information technology is a computer-based system of information that encourages the development of the transaction of information products. Global trading makes the availability of product internationally that is not available domestically. The IT sector has a profound impact on Global trade. It has revolutionized the whole world. IT is a powerful tool that has changed the world completely. It has made life much easier in a way that everything is just one click away. It is a big source of income for many countries. It has improved the product information form and service.
Before we see the benefits of the IT sector on international trade, we would discuss some facts and figures first. IT has become a big source of revenue globally. According to UNCTAD, it was published on Global Trade Update on 7 Feb. 2021 that the trade of goods remained strong. It reached a record level of $28.5 Trillion in 2021. It was almost 25% more than that in 2019. Goods trade increased by $200 billion by the end of 2021 and achieved a new record. Likewise, services trade also increased to $1.6 trillion by adding $50 billion to the global revenue.
It would not be wrong to say that information technology has become the center point for global trading. With the emergence of the internet, services and business transactions are carried out easily. The world has become a marketplace. Everything is available under one roof, as far as your internet device is. In today’s world, there is no boundary for businesses.
There are many positive impacts of information technology on international trade.
- Global Reach: Information technology has produced a wireless society. The Internet has made it easier for the population to reach everything they need.
- Convenience: It is very convenient for the customers to order online as they don’t have to go anywhere. They can buy better-featured products by reviewing all of them in one place.
- Price transparency: Customers can choose a product that has many prices in the market among different companies. So they can choose the best and the most reasonable price.
- 336Customer satisfaction: With the internet, customers can get more information about the product and they can make better decisions about the product. More information means more customer satisfaction.
- There is more scope for internet-based services. With Information Technology, there is no such need to go to physical markets and buy anything. Internet-based services are more preferred. You can buy everything at your home, in your comfort zone.
- Costs have been reduced. it is the reason that you can witness sales at brands like iPhone for sale
- Quicker Delivery: It is also an advantage of Information Technology that it enables much quicker delivery of products. Many products like soft wares, games, etc. can be downloaded immediately. Customers don’t have to wait too long for the products.
Moreover, there are many negative impacts of information technology on global trade as well.
They may include:
- Privacy and security: With the emergence of information technology, the privacy and security of customers have become very challenging these days. Credit card details can be theft, or misused.
- Delayed delivery: Some products are indeed readily available for the customers by downloading. But the delivery of physical products can be late for delivery. It is also a problem in international trading.
- Uncertainty: Uncertainty of product quality, price, and delivery are always there. The customer doesn’t know about the quality of the product. The labeled price is in accordance with the quality of the product. If the payment is done, the product will be surely delivered or not. If the company is just going to take the money, it will always be uncertain. if you want to make a purchase decision that is saved from that uncertainty you can trust brands like experimax which provide quality along with the best price on the market MacBooks for sale.
Information technology has immersed impact on international trade. It has digitalized the world. Everything is now in a common man’s reach in just a blink of an eye. As there are many benefits of this system that no one can deny. At the same time, it has privacy and security issues that can’t be neglected at any cost.