In this article, we will discuss Global Trade Supply Chain (Various Approaches to Improve Global Trade Supply Chain). So, let’s get started.
Various Approaches to Improve Global Trade Supply Chain
- Stimulus Packages in Countries: Global supply chains that have remained dormant for long can be made resilient by stimulus packages and forced savings. Such interventions are expected to help revive manufacturing with lower production costs, induce investments and promote technology transfers.
- Start Negotiations Under WTO: In a post Covid-19 world, members of the World Trade Organization should promote trade facilitating rules.
- Mutually beneficial trade arrangements that seek deeper economic integration should be entered into at the bilateral and regional levels to create win-win situations for all stakeholders, including consumers, who tend to benefit from lowered barriers and harmonised standards.
- Harness Technology: Countries that harness technology are expected to dominate international trade in future with a transformational impact on the global economy.
- Just as the steam engine in the 19th century and computing power in the 20th century, data will be the main driver of economic growth in the 21st century.
- Rapid growth in e-commerce and the virtual world will demand entirely new skills from the workforce. Therefore, economic policies should focus on stronger safety nets for workers; income protection, skill training, health care and educational support for families.
- Focus on Restarting Manufacturing: Building an ecosystem that incentivises value-added manufacturing and technology-induced finished products should form a part of long-term strategy for emerging economies like India.
- Inclusive Approach: Addressing the needs of the most vulnerable countries – measures, for example in relation to export restrictions and creation of regional stockpiles, could include specific exemptions or assistance to address the needs of the poorest countries.
- Favourable Business Environment: Keeping markets open and predictable, as well as fostering a more generally favourable business environment, will be critical to spur the renewed investment. And if countries work together, much faster recovery is possible than if each country acts alone.