In a world where everything has been consolidated into a global village, it has become difficult to survive in international trade deals without the knowledge of online trading. Technology is driving the world fast. Each day a new innovation is launched into digital space, a trend that keeps the demand for online knowledge vibrant.
Without online trade, we would have very limited access to foreign markets which would in turn deprive us of our freedom of choice of products or services that we want.
Traditional trade by use of paper money only applies to local markets especially in third world countries where the cost of internet is high as well as the knowledge about online trade. Business people in such countries are wary of online security threats and are afraid to trade on a platform they have little trust with.
Another factor that keeps online transactions low in developing countries is the levels of income. With most of the populations living below the poverty line, you don’t expect them to own a smartphone, a PC, a tablet or a laptop for transacting online and accessing a wider market that guarantees quality products and services.
Without online trading, this would be the scenario:
- Few opportunities
- A small market
- Reduced quality and quantity
- Much paper work
- Weak on no economic blocs
- Lower global per capita income
- Time wastage
- Low trade volumes
There would be less options of generating income. This is because the traditional ways of amassing wealth would be congested leaving only a few one up for competition. Joblessness would be a cliché in world economy. Chances of getting something to do for a pay would be too low. Nowadays people offers so many service on the internet for a fee. They sell goods for a profit. All that would be a dream.
Small markets translate to high demand and low supply making prices of goods and services skyrocket unnecessarily. This would economically hurt many people who are used to alternative buying on online platforms, especially e-commerce.
Reduced quality and quantity
Quality only comes with competition. Most firms would be monopolies without online business which offers serious completion of the price and quality of products and services. Variety would be so low and unable to meet the demand for new products. Buying in bulk would not exist because rationing is brought about by scarcity of goods.
Most transactions would be done on paper, a process that is boring and tedious. Nowadays we have digital stamps and signatures that save us the effort of printing this and that for a transaction to be accomplished.
Weak or no economic blocs
Economic blocs thrive on the policy of free trade and movement. The cost of moving to another country to make purchases is usually high, since it is mostly through air transport. Online trading strengthens these blocs because one can buy goods at the comfort of her office saving transport costs. Without it, one would incur expenses on top of the price of the products he is buying from another country. Economic blocs would thus be weak posing for low economic power.
Lower global per capital income
The world would be poorer for sure. So many transactions are done over the internet daily. If they never existed, more people would live below the global poverty line. Live would be a bit more difficult due to reduced cash flow in world economy due to unemployment. Global online business like spread betting, forex and a Contract for difference (CFDs).
As a result, dependency levels would rise, leaving less money for better lives. The only available money would be that of satisfying basic human wants.
Loss of time means loss of business. Without online trade, bureaucracies would thrive. A business registration that takes one day through the internet would take several weeks. This is due to the presence of middle men who delay the process and ask you for a fee if you want it faster. Going out to shop wastes so much time compared to buying products online.
Low trade volumes
Because the online market would not exist, dealers and business people would record a significant drop in sales turnovers. This leads to reduced profits sometimes leading to closure of business. Online trading makes trade flexible.
This means life on planet Earth would be hard to bear resulting to higher levels of crime incidences and prevalence. There would be no security along streets in cities and even in remote areas as many people would look for shortcuts to make life bearable.