INTERNATIONAL TRADE WITH BLOCKCHAIN TECHNOLOGY
14 Jul 2023
Looking at current economies, international trade is one of the core reasons for the development of any country especially on the international stage. International trade helps to extend the country’s market and boosts production and improves relations with other countries as well. As a result, it also impacts in bringing cheaper products to the domestic consumers, due to the competitive nature of the market. Another benefit of international trade is building a strong economy with an increase in revenue
Whenever the terms are used like trade, products, supply or transport; they are all connected with the supply chain. Without proper supply chain management, a successful delivery cannot be possible. The logistics under the supply chain are mainly responsible for making sure delivery process happens.
KEY CHALLENGES IN INTERNATIONAL TRADE
International trade involves many processes like; market research, documentation, transportation of export and import, payments, transit and many more. But the key points on which the trade faces challenges are;
Documentation: Before any trade both the exporters and importers need to prepare the documentation. But sometimes, things get little chaotic, and the loss of any paper or data can create a negative impact while trading internationally and huge delays.
Problems with transportation and communication: The process of goods being dispatched and receiving receipts are more difficult and involves more cash flow. In emergences cases like; natural calamity or war, the goods become more expensive. Correspondingly, sending, and receiving product information is overpriced and more difficult in stressful times.
Difficulty while payment: As the currency differs from country to the country thus, the fluctuation in exchange rates is obvious. Due to time delays, the allowance payment that is involved in foreign trade becomes expensive and creates significant risks.
Product security: As the shipping process is not within the country, there is a big chance of fraud or loss while trading international and dealing with any issues can depends entirely on which country it happens.
The crucial part is documentation that includes agreement papers, proper transportation, and payment processes are the prime things that need to be solved. This is where blockchain technology sets things apart. This technology has all the solutions to the above problems.
The technology that has already had implications on the trade supply chain to make it more efficient and secure.
The decentralized digital ledger allows the data access from anywhere in the world and gives real-time updates of the shipping products until they reach the final consumers. The smart contracts can replace the paper agreement and make it more advanced and tamper-proof.
With the blockchain the suppliers, vendors, manufacturers, and distributers even customers can update the real-time situation by sharing information to improve the delivery process without any delay. This is successful in creating trust on these specific areas; data security, data transparency, data transaction.
The disruption of blockchain makes the payment faster and cheaper by terminating the dependency on others. Not having any third party interference makes the payment more secure and less expensive between the importers and exporters in any part of the world. It also lowers tax and fees.
The real-time updates and QR code verification keep the goods secure and traceable every time while shipping to delivering.
In the end the blockchain allows the secure trade transactions between the export and importers with transparency by eliminating delays in product deliveries and payments.