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Google delivers 3 keys to improve trade from technology

Google explains how these 3 keys improve trading. (photo: Industry Podcast)

The World Trade Organization recently predicted that global trade growth will slow sharply next year, and the World Bank believes the slowdown will undermine efforts to reduce poverty. At the same time, inflation, high energy prices and fiscal pressures are on the agenda of politicians around the world.

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In this not so favorable context, a source of optimism is the potential of digital transformation to accelerate economic growth and create new opportunities, especially for micro, small and medium-sized enterprises, which are often the most vulnerable to economic downturns.

As more and more people and businesses go online, especially in emerging markets, Internet continues to create new export and growth opportunities for companies.

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A published report gives an idea of ​​the scope of the opportunity, estimating that the right investments in digital transformation could boost exports of 6 Latin American countries at $140 billion per year by 2030, a fourfold increase over current levels.

How emerging economies can accelerate their digital transformation with investments

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– Infrastructure

Investing in digital connectivity and safe and environmentally sustainable infrastructure, including smart management.

– People

Preparing people in all communities for the jobs of the future by helping to enable and train them for the digital economy.

– Public politics

Creating a predictable regulatory ecosystem that promotes competitiveness, open markets, interoperable regulatory standards, and tax regimes based on international standards.

– Technological innovation

Deploying technological innovation that can unlock new opportunities. Increase data usage, artificial intelligence and computing in cloudto create efficiencies and enable economic growth.

Artificial Intelligence illustration. (photo: Europe Press)
Artificial Intelligence illustration. (photo: Europe Press)

Keys that can improve trading

To assess the potential for Latin America, Google conducted a new study to better understand digital exports and their potential to impact six economies in the region. The results are remarkable.

The researchers estimate that by 2030, digital exports will account for more than 2% of the GDP of Argentina, Brazil, Chile, Colombia, Mexico and Uruguay, or about US$140 billion per year, a significant increase over exports, that is, 0.8% of GDP. These are the three keys in which digitization is changing business in Latin America:

1. Easier access to new markets

Most of the current and potential economic benefits come from digital tools that facilitate access to foreign markets, which in turn facilitate foreign sales. What used to require large upfront investments and navigating complex bureaucratic processes can now be done online, often using a smartphone or one Tablet.

More than 60% of economic growth is fueled by tools like online advertisements, which are often shown to consumers abroad. Cloud services are another driver of digital exports thanks to new investments in infrastructure in the region, such as Google Cloud Zones in Santiago, ChileY São Paulo, Brazil.

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Person using an iPhone. (photo: Five Days)
Person using an iPhone. (photo: Five Days)

2. New products

Another area, accounting for more than a third of projected earnings, is the export of a growing range of new digital products and services. This applies to mobile apps who find a global audience through Google Play Store or other platforms.

More than 2.5 billion people in more than 190 countries use Google Play every month. And more than 2 million developers work with Google to build successful businesses and reach people around the world.

The video streaming is another example where content produced in one country can be easily exported. By paying creators more than $6 billion in 2021-2022, Youtube is allowing content and culture to transcend borders.

TheGrefg, Spanish YouTuber. (Photo: YouTube/TheGrefg)
TheGrefg, Spanish YouTuber. (Photo: YouTube/TheGrefg)

3. Digitization of business procedures

The third key that promotes export growth is the general digitization of business processes.

For example, paperless procedures at borders or ports, emails or online forms instead of phone calls, or cloud computing or artificial intelligence technologies that simplify previously complex business machines by reducing costs. For example, him Google translator supports more than 100 languages.

Entire websites, scanned documents or images can be translated, enabling seamless cross-border communication. Although the digitization of businesses is not considered in the overall assessment, it would bring additional efficiency to trade balances.

Google translator. (Photo: Google)
Google translator. (Photo: Google)

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