Will Easier Cross Border Transactions Help Foster Global Trade?

Executive Brief

The world has made a very bad habit of placing limits on trade. Complications arising from imbalances in currency and money exchanging have also had a wounding effect. With less trade, the global economy becomes vulnerable to some very harsh realities.

Through easing trade regulations, we’re likely to see improvements over time. One of the things that could potentially help is cryptocurrency. Countries willing to forgo their native currencies and commit to transactions occurring in bitcoin or related digital currencies are more likely to avoid the value imbalances that occur between USD and the euro, the ruble and the yuan, etc. Exchanging currency would no longer be necessary as the same form of money is being used by both parties. It’s simple tactics like these that can ease trade regulations, empower nations, and grow our universal economy.

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When we ponder the above question, a lot of things come to mind. Things such as remittance programs, for example, exist to allow employees working abroad to send money back home to their families. Sometimes in struggling or repressed nations, when work and resources are scarce, one must take drastic measures in order to provide for those they care about.

But one of the big problems with these programs include the heavy fees that can hit employees hard when money is sent back home. Western Union, for example, might charge as much as $14.99 for a delivery of $20. That’s a charge equaling nearly 75 percent of the sent amount!

Looking at situations like this, it’s clear something must be done. One of the issues several countries have is that trade is wounded given the limitations of import and export laws, and transactions can often tack on extra charges that make it almost impossible for one country (or both) to be able to move forward. The other issues at hand stem from currency imbalances. Different monies carry different values, and exchanging USD for pesos or euros for example, come sometimes add various complications. Scenarios such as these can easily make countries throw in the towel before ever entering an agreement.

It may take years to become a global medium of exchange and conducting business, but history has shown us time and time again that making trade easier results in, quite simply, more trade. This rule applies to pretty much all things in life. The easier the responsibility, the easier it can be for someone to manage their job. Easing a playground’s structure will allow children a stress-free period of enjoying outdoor activities.

One thing that could potentially make trade easier is the creation of a global currency that all countries can use and gain access to. One of the issues mentioned above involved currency exchanges. It’s hard to transfer one currency into another due to imbalances in value, but this doesn’t have to continue for the rest of time. Take a look at bitcoin, for example. Bitcoin is available to the world, and should two countries engaged in trade be willing to forgo their native currencies and conduct all transactions in bitcoin or the SAME currency specifically, there would be no need for currency conversions, and the complications that arise in the process would likely vanish into thin air. Such a simple tactic could easily save time, stress and even money. Trade would become easier, and we’d probably see further limitations disappear in the future.

Putting all this into perspective, we as a global community must understand that if we’re ever going to do business with our neighbors and establish long-lasting relationships, “ease” is the magic word. The fewer the complications, the more trade we’re likely to see, and from further trade, the global economy can benefit and prosper like never before.

The views expressed by the authors on this site do not necessarily represent the views of DCEBrief or the management team.

Author: Nick Marinoff

Nick Marinoff is a freelance author, writer and journalist. His first book, "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" is now available on Amazon.com amazon.com/author/nickmarinoff. He is currently a lead content writer and news editor for Money & Tech, and is a regular contributor to both NewsBTC and Bitcoinist.net. Other publications include Black Impact Magazine, Benzinga.com and The Loan Gurus, to name a few. He is a proud graduate of FHSU in Hays, KS.

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