A Few Words About Us
How large is the share of current trade that is fundamentally affected by digital transformation? The data to answer this is surprisingly plausible and fragmentedly random. We have tackled this question in two ways: First, we have taken a bottom-up approach, using the categories of digitally enabled trade defined above and then estimating their respective sizes given a range of indicators. Second, we have taken a top-down approach, using data from the limited number of countries that have tried to empirically measure the cross-border component of digitally enabled commerce. Given the significant limitations in available data, we have in both approaches applied the lower bound of estimates.
Using these conservative measurements, we estimate that in 2019 digitally enabled trade will be worth about $800 billion (the bottom-up estimate) to $1.5 trillion (the top-down estimate). (See Exhibit 1.) This is meaningful in overall size, but at a share of about 3.5% to 6% of global trade, it is far from dominant. For individual market segments and firms, however, the share might already be much higher. In fact, digitally enabled trade categories are growing faster than trade overall, and we estimate that up to 70% of all global trade flows could eventually be meaningfully affected by digitization, with 22% of trade, especially in service sectors, most susceptible.
This is Why You Should Choose Us
With Your Digital Business And Have A Cup Of World's Coffee.
How should companies respond to this complex and rapidly shifting environment, which offers significant new opportunities but also contains traps? We identify three key areas of action, enabling firms to act in ways that are aligned with their specific circumstances, coordinated across key dimensions of their strategy, and informed about the external context they face as well as our tools and software at one-stop shop.
Analyze your exposure to digitally enabled trade. Firms can assess their exposure along two dimensions: their approach to internationalization (that is, whether they serve foreign markets as separate multi-local entities or as an integrated global market), (the extent to which digitization has transformed their offering and value chain). These dimensions relate in systemic ways to the type of digitally enabled trade:
- Companies focused on selling digitally essentially turn local markets into global markets.
- Companies that enhance their offering through digital elements by definition increase their level of digitization, and can be in either global or multi-local industries.
- Companies that are digitally native have high levels of digitization and may have been “born global.”
Integrate your digital and global agendas. Firms that have identified a current or emerging exposure to digitally enabled trade need to ensure that their digital and global agendas are aligned.
Develop intelligence and engage in the policy arena. Companies need to make choices about an integrated digital and global strategy with a view to how the relevant technological, market, and policy context will evolve.
The cost of a cup of coffee and stay free of use desks and chairs or meetings clients, signing contracts are a matter of privacy with all parties at the place. There is no overhead cost, except rentals of computers, techies, software, consultancy and station. Others would be minimum costs for international project financing, small offices, mailboxes, and trading posts as well as human resources.