invisible trade

Introduction

Intangible trade, also known as invisible trade, refers to the international trade of various intangible goods, including technology, information, brand services and knowledge. The emergence of digital economy and the rapid development of the fourth industrial revolution have brought new impetus to the intangible trade.

Characteristics of intangible trade

1. The transfer of ownership is easier

In contrast to the trade of physical goods, the transfer of intangible products is easier and more convenient. Ownership of physical goods requires the transportation of goods from the seller’s warehouse to the buyer’s destination, but intangible products can be transferred electronically in a very short period of time by any communication technology.

2. Non regional restriction

Unlike physical trade, intangible trade does not have regional restrictions, so it is easier for sellers to access the global market. This makes it possible for start-ups in developing countries to reach markets in developed countries.

3. Low cost

Intangible products often involve a small cost and they can be used more efficiently than physical products. Since the cost of creating and distributing these products is lower than their physical counterparts, they are often cheaper.

4. The production of nonrenewable resources

Since intangible trade does not involve the exchange of physical goods, there is no need to consume nonrenewable resources. This also reduces the impact on resources.

Impact of intangible trade

1. Boost economic development

The growth of intangible trade helps to speed up the development of a nation’s economy and its overall competitiveness. This can be seen in the emergence of new markets for the sale of new products, services, and ideas. The expansion of the service sector, which involves the exchange of such products, has benefited the economy.

2. Low environmental impact

The environmental impact of intangible trade is much lower than that of physical trade because it does not involve the production and transportation of physical goods. This helps to reduce the environmental pollution associated with transport, pollution from factories, and other forms of waste production.

3. High employment rate

The growth of intangible trade has had a positive impact on employment. This can be seen in the growth of the service industry, which requires managers, marketing professionals, data scientists, strategists, and other highly skilled workers.

Conclusion

Intangible trade has greatly contributed to the development of the global economy. It has provided a new avenue for businesses to reach new markets, while reducing the cost and environmental impact of traditional physical trade. It has also enabled businesses to reach markets around the world and has helped to create jobs and boost employment.

Invisible trade refers to the intangible, non-material goods that are traded between two countries. It includes services such as intellectual property, tourism, finance, telecommunications, and entertainment.

Intellectual property has become increasingly important in the global economy. It refers to any creations of the human mind, such as literature, music, art, designs, and symbols. It gives creators economic incentives to invest in innovation, research, and development. By protecting unique ideas and works, countries can benefit from the economic value of their creativity.

Tourism is another important form of invisible export. Tourism entails the exchange of goods and services between the tourists and the locals. Traveling from one country to another is an act of trading goods and services. Tourists bring not only money to the local economies but also knowledge and technology, enhancing local development.

Financial services are an important part of invisible trade. It is critical for the economies of developed countries as it allows them to allocate resources, share risks, and access capital. It allows countries to increase their economic output and develop new and innovative ways to generate income.

The rise of global telecommunications has revolutionized the way goods and services are traded. Telecommunications technology such as satellite communication, cell phone networks, and the internet have made it easier for nations to do business with each other, as well as facilitate international trade.

Entertainment and media are also a large part of invisible trade. The exchange of films, music, and other forms of entertainment has become increasingly more important in todays global economy. By harnessing the power of entertainment, countries can benefit from the huge economic potential of the media industry.

In conclusion, invisible trade has revolutionized the way goods and services are traded between nations. It has made it easier for countries to access new markets, share resources and information, as well as develop innovative solutions that help spur global growth.