Global Trade's Big Future: Digital Services

©iStock/Chainarong Prasertthal

According to a new World Trade Organization report, the growth of cross-border digital trade flows — like e-commerce, video streaming, games and apps — increased four-fold since 2005 and are now valued at some $3.8 trillion. That accounts for more than half of all services trade worldwide.

“This gives us a bit of an indication of where world trade is heading,” says WTO Chief Economist Ralph Ossa told Bloomberg in a recent interview. “The future of trade is in services, particularly digitally delivered services.”

Read more to appreciate how the golden age for electronic commerce is already upon us.

Related to this, read research fellow Kati Suominen's report, "Trust in trade:  Challenges to the global convergence on digital standards," for the Hinrich Foundation.

The Dynamics of Global Value Chains

©iStock/Tryaging

As McKinsey's Global Institute indicates, globalization is in the midst of a transformation.  In its recent 132-page report, "Globalization in Transition:  The future of trade and value chains," the authors say:

Yet the public debate about trade is often about recapturing the past rather than looking toward the future. The mix of countries, companies, and workers that stand to gain in the next era is changing. Understanding how the landscape is shifting will help policy makers and business leaders prepare for globalization’s next chapter and the opportunities and challenges it will present.

Read on to learn more.

Note a key finding in the report:  Larger companies may need to help their small and medium-size suppliers upgrade and add digital capabilities to realize the full value.