International trade and blockchain technologies: Implications for practice and policy

Abstract

International trade is an important aspect of business. Exchanging goods on a global scale allows states to produce and export goods that they are more efficient in and import the ones that they are not. As a result, countries reduce the cost of production, price of commodities, and expand their markets. Even so, international trade is a complex process that is facilitated by different financial, socio-political, and technological factors. The blockchain technology has revolutionized international trade and has the potential to continue doing so as this smart technology is still at its infancy. This paper analyzes the role and impacts of the blockchain in international trade, including the technology's benefits, problems and challenges, and recommendations for improving its usefulness. The work finds that blockchain plays a significant role in international trade with numerous benefits. However, a few challenges should be addressed to ensure organizations in international trade benefits fully from blockchain technology.