Question

Which political, economic, and technological developments (institutions and innovations) contributed to the growth of world trade?

Answer 1

Having a world trade is about the integration of the world ecomomies. Having a sense of liberalisation and globalisation at large has made this world trade achieve all of its best structure making companies to integrate and connect with each other apart from the national boundary.

The political factors like the removal or low tax duties for trade between countries, providing subsidies, currency controls, exports imports duties etc talks about the growth for the world trade. Because of the liberalisation, many countries integrate and share the resources because of low tax duties and customs made by government to promote trading at large.

The economic factors which include your higher demand for various goods, supply, productivity levels, labour, trade policy, inflation, exchange rates etc have also contributed for the growth of the world trade. Trade can never be increased where there would be immensed demand and productivity to meet and match the same. People work together around the countries connected to make the world trade go higher.

Technological factors that we discussed about that how people are being connected is one way to look upon making the increase in world trade. More and more technology is able to link the business with different countries and globally using the high tech servers, databases etc to have a collective record of the customers and to produce and meet the demand accordingly. Technology helps people to integrate and connect around the world which helps in global trade as well.