The Technology and Engineering of Global Trade

Aiden Chen

Published: August 28, 2024

Have you ever wondered how the items you purchase online make it to your doorstep? While you might assume it is solely done by plane, train, or even drone delivery, all of these processes are a fraction of the intricacies included in international trade. To ensure imports and exports occur efficiently between countries, complex systems of transportation innovations, communication technologies, and vast infrastructure dedicated to receiving goods are required. Since the earliest roots of ocean trade from 800 A.D., the global shipping system has come a long way (African Studies Center 1). Through technological and engineering feats, international commerce has gone from small sailboats to cargo ships larger than football fields. Take a look at some of the most significant technology and engineering-based developments in global trade.

Digital communication

In previous iterations of international trade, countries faced the difficult challenge of communicating globally. Maintaining strong connections with partners included consistently visiting and handling business in multiple nations worldwide. Long travel times to reach in-person meetings caused international relationships to be few and far between. Nations typically only conducted trade with bordering countries. Throughout a troubling time of commerce, digital communication slowly eradicated this issue. Technologies such as email, video conferencing, and text allowed for simultaneous messaging across the globe. The advancement of digital communication revolutionized how international business operated. It unified trade, creating partnerships that could be maintained without constant in-person meetings, broke down geographical barriers, allowed countries on opposing sides of the globe to conduct business, and gave the opportunity to lesser countries with specialized goods to find their spot in the market (International Trade Council 1).

Cargo ships

While ocean commerce has been around since 800 A.D., most of the trade industry's significant developments have occurred within the last two hundred years (African Studies Center 1). The rapid advancement of trade coincides with global transportation innovation. During the late 18th century and onwards, humanity began catering to machine travel rather than animals such as horses. These engineering developments of cars, airplanes, trains, and ships became the new norm. These modes of travel became vital to the continental and international trade system. Truck, ship, train, and air shipments made importing and exporting far more advanced and efficient. Within these forms of delivering goods, cargo ships have stood as the most influential aid to global commerce. With the abundance of oceans surrounding each continent, freighter ships offer an efficient, inexpensive way of facilitating goods from producer to consumer. These vessels, multiple times larger than football fields, can carry products in bulk over long hauls while offering low fuel consumption (Lading Logistics 31). There is a night and day engineering difference between the wooden boats of the past and the new carriers responsible for steering international trade.

E-commerce platforms/online payment

Comparing the current-day global trade landscape to what it was thirty years ago is unrecognizable. This is attributed to the scene-shifting technology of e-commerce platforms and payments. Even as late as the 1990s, traditional methods of international trade were far more complex, involving intricate paperwork and lengthy processes to import and export goods (International Trade Council 2). During this era, consumers primarily bought products through in-person shopping. However, this form of purchasing posed a problem for those in non-urbanized spaces, far from any stores to receive products. Today, shopping has never been more convenient due to the rise of e-commerce websites such as Amazon, eBay, and Temu. Digital platforms allow enterprises to manage transactions, deliveries, imports, and exports all without an in-person storefront. These once-lengthy processes were streamlined into more efficient and innovative operations following the rise of e-commerce (Inductus Global 3). Online forms of payment such as Paypal, Apple Pay, and Cash App enable customers to shop in the comfort of their homes instead of without the hassle of visiting busy shopping malls. These growing forms of e-commerce and digital payment technology continue to revolutionize the conduction of global trade.

Shipping ports

Beyond the trade industry, prevalent technology and strategic engineering work hand-in-hand as the working source of innovation across the globe—it is the backbone of our development as a society. For example, the technology of e-commerce and the engineering of new transportation aided in shortening the intricate processes of moving goods to consumers, making them more efficient. These advancements have exponentially accelerated the process of receiving orders, following procedures and delivering to customers. One criminally underrated piece of engineering in the world of trade is shipping ports. Seaports, usually on coasts, are the resting points for ships to load and discharge goods. They serve as critical nodes for nations and companies to receive or send away products (Nicholson 1). By having dedicated infrastructure to trade, these pieces of engineering sped up the long and intricate process of international business. 

The world of international trade is driven by the vast engineering and technological advancements we have made as a society. With the future of STEM growing, global trade will likely continue thriving and making strides.

Sources:

African Studies Center. The Indian Ocean Trade: A Classroom Simulation, www.bu.edu/africa/files/2011/11/Indian-Ocean-Trade.pdf. Accessed 25 Aug. 2024. 

Inductus Global. “The Role of E-Commerce in Facilitating International Trade.” LinkedIn, 28 July 2023, www.linkedin.com/pulse/role-e-commerce-facilitating-international-trade-inductusglobal/.

International Trade Council. “The Role of Technology in Streamlining International Trade - International Trade Council.” The Role of Technology in Streamlining International Trade, tradecouncil.org/the-role-of-technology-in-streamlining-international-trade/. Accessed 24 Aug. 2024.

International Trade Council. “E-Commerce and Its Transformation of International Trade - International Trade Council.” International Trade Council - Solving Trade-Related Issues, 7 June 2023, tradecouncil.org/e-commerce-and-its-transformation-of-international-trade/#:~:text=Streamlined%20Cross%2DBorder%20Transactions,trade%20more%20efficient%20and%20accessible.

Lading Logistics. “Cargo Ships: Backbone of Global Trade.” Lading Logistics, 13 Aug. 2024, ladingcargo.com/blog/cargo-ships-the-backbone-of-global-trade/#:~:text=Cargo%20ships%20play%20a%20crucial,affordable%20food%20and%20manufactured%20goods.

Nicholson, Jonathan. “The Role of Canadian Ports in Global Trade.” Global Trade Magazine, The Authority For US Companies Doing Business Globally., 24 Nov. 2023, www.globaltrademag.com/the-role-of-canadian-ports-in-global-trade/#:~:text=In%20the%20vast%20network%20of,the%20efficient%20exchange%20of%20commodities.