Going global

We’ve reached a tipping point in how the world works. The largest economy in the world is no longer the economy of any one country — it is the economy of the global trade of goods and services.
Countries making an impact in the world of global trade are those connected to the global mainframe, not those that operate within the silos of their national geographies. Global trade has accelerated the formation of one world, one marketplace; a place where boundary-free commerce relies on worldwide connectivity.

The characteristic of global trade is also changing. Formerly small traders are becoming major trading powers, and trade is occurring with countries outside the traditional players. The biggest change is that an increasingly large part of world trade is comprised by trade with and among developing economies.

Since 1995, the United Nations Conference on Trade and Development has kept detailed data on the source and destination of exports. The data indicate that the proportion of exports originating in the developed world and the developing world stayed the same until around 1999. In other words, exports from both were growing at the same rate.

Since 1999, however, the developing world has been catching up. The developed world still grew: Between 2000 and 2009, total developed country goods exports rose by 66 percent. For developing countries, however, the figure was 147 percent.

Why so much emphasis on global trade? It helps businesses become more competitive by providing opportunities to expand businesses worldwide.

We cannot and should not stop this trend, but we can leverage the trend to strengthen our economic recovery, generate growth and create jobs.

There is no denying that Asia has become central in the world economy with the rapid growth from developing countries like India and China.

China will surpass the U.S. by 2017 in purchasing power parity terms and will account for twice the America’s share of imports and exports by 2030, according to The Economist’s forecast.

India is expected to become the third-largest economy next year. Aligned with the recently ratified KORUS FTA, Korea is also striving to further its status as a global trade hub sharing markets with the U.S. along with the ASEAN and EU pacts.

The increasing trend to trading across the border is beneficial to Korea because many of domestic business will be given an opportunity to become a major player in the global trade market.

Particularly, small- and medium-enterprises (herein, SMEs) in Korea are expected to experience a significant growth. According to a study by the Small and Medium Business Administration, in the year the KOREU FTA was ratified in 2011, exports from domestic SMEs to Europe were increased by over 18 percent.

Add to that the FTA between Korea and the U.S. is expected to create a $1.38 billion trade surplus for Korea, according to the Korea Institute for International Economic Policy and the Korea Development Institute. More specifically, SMEs in auto parts, textile, and electronics industries are expected to promote export and global business more vigorously.

Global trade is at the very heart of FedEx business. Our network is a critical enabler for the global supply chain. By facilitating global connections, FedEx believes when individual countries enable trade, they benefit not only to themselves, but also other nations with which they trade.

By improving market access and working to provide efficient customs procedures, FedEx contributes to enhanced opportunities for both importers and exporters.

In this increasingly crowded marketplace, being globally competitive requires having a global mindset and prioritizing connections. With access to the internet and access to FedEx, businesses can sell goods and services and find suppliers in virtually any market. <Korea Times/Chae Eun-mi>

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