Why does the U.S. government need to intervene in international trade by setting up the U.S. Commercial Service?
Living in the realm of the 21st century means realizing that the question of the U.S. companies starting to export worldwide by using new information and communication technology is the question of when, not if, as Michael Lally (Milian, 2008, 00:00:42) stresses.
The introduction of an entirely new area for the U.S. companies to explore begs the question of whether the processes involved should be controlled by the state government. On the one hand, carrying out the observation of the key trading processes has always been the priority for the U.S. authorities; on the other hand, the transfer to the informational environment means that new tools for carrying out the supervision will be required (Petersen & Wiegelmann, 2013).
The need for the U.S. government to supervise the exporting processes that are most likely to be conducted in the nearby future on a regular basis so that the process of exporting should become easier for the companies involved. Since the process of exporting requires complying with a set of certain requirements, it will be adequate not to make these requirements company-specific, but, instead, to establish a statewide standard that all organizations can follow (Milian, 2008, 00:01:04).
Apart from the legal ramifications of the state government intervention into the exporting process, the economic implications of the sate supervision of the trading processes deserve to be brought up. According to Lally, with the help of state authorities, the process of exporting “can be done in a cost-efficient manner” (Milian, 2008, 00:04:25), which is an obvious advantage.
Changing the landscape of the U.S. economy, the emergence of the e-market has triggered the initiative for exporting goods form a range of American organizations. While the process is quite chaotic at present, it can become orderly and less risky with the supervision of the American government.
What are the effects of new information and communication technology, such as the internet, on the international trade theory?
The effects of modern IT and communication technology on the development of the international trade theory cannot possibly be overrated (Hsu, 2012).
According to Lally, the key innovation that the invention of new information technology has spawned, concerns the scale of entrepreneurial enthusiasm, which has swept literally the entire world: “Anybody can be engaged in international business; some of the viewers might already be, but might not know it” (Milian, 2008, 00:01:11–00:01:15). To be more exact, the easiness, which one may introduce their product to the marketplace, can be considered a major foot forward in developing the international trade theory.
Apart from the scale, which the information technologies have reached over the past few years as the tools for the U.S. companies to carry out export processes, the significance of the leadership strategy adopted, as well as the leader’s persona in general, deserves to be mentioned (Schaltegger, Lüdeke-Freund, & G. Hansen, 2012).
According to Lally, the business people of the 21st century tend to reconsider their leadership approach and reassess their skills in order to figure out whether their company has what it takes to become international (Milian, 2008, 0:02:44).
Another obvious alteration, which the incorporation of IT into the operation of the U.S. companies has triggered, concerns the decision to export goods in general. Indeed, prior to the incorporation of IT into the framework of the U.S. companies, the latter faced too many obstacles to consider exporting goods a possibility.
With the use of modern technology as the means for transferring data fast and efficiently, the problem of failing to retrieve information of mismanaging it has been reduced to a minimum. Consequently, the very basis of the international trade theory has been altered owning to the information technology.
Reference List
Hsu, S. H. (2012). Effects of competitive strategy, knowledge management and e-business adoption on performance. The Journal of Human Resource and Adult Learning, 8(2), 42–49.
Milian, E. (2008). International trade – Are you ready to be a part of it?. YouTube. Web.
Petersen, H.-G., & Wiegelmann, A. M. (2013). Institutional economics, risk management, and breakdown of corporate social responsibility: Towards a new architecture of financial markets. iBusiness, 5(3B), 190–199.
Schaltegger, S., Lüdeke-Freund, F. & G. Hansen, E. G. (2012). Business cases for sustainability: the role of business model innovation for corporate sustainability. Journal of Innovation and Sustainable Development, 6(2), 95–119.