We are living in strange times. From climate change and human displacements to ongoing pandemic threats and the risk of unregulated technologies – the world is facing a number of challenges that require global cooperation to solve.
The World Economic Forum’s (WEF) ‘Global Cooperation Barometer 2024’ report sheds light on evolving trends in e-commerce and its impact on international trade. Because “measuring cooperation is a critical step in identifying ways to strengthen it.”
Locate2u News takes a look at the data and explores how emerging trends in trade cooperation are shaping the future.
Global e-commerce trends
As per the report, the five pillars of global cooperation present a “dynamic, complex picture of cooperation.”
These pillars are:
- Trade and capital to promote development and resilience.
- Innovation and technology to accelerate progress.
- Climate and natural capital to resolve environmental challenges.
- Health and wellness for longer and better lives.
- Peace and security to prevent and resolve conflicts.
These trends have an impact on consumer behavior, which in turn, affects how businesses strategize and adapt.
Example: During the pandemic, consumer demand decreased. Some spheres of manufacturing and shipping came to a complete standstill. However, trade and commerce resumed as the pandemic restrictions eased.
Businesses had to adapt by connecting with consumers and by finding ways to ‘restart’ the economy, as it were, once homebound consumers ventured into the world again.
Now, as the world faces escalating climate challenges, international cooperation is more important than ever to move the e-commerce sector forward.
Overcoming challenges, finding opportunities
“Fundamentally, companies and countries should remember that cooperation breeds strength and resilience. Those that thoughtfully and constructively manage relationships bounce back better from challenges and achieve objectives,” the report states.
How can this be done?
The authors of the report suggest governments and private companies learn from the pandemic, especially how resources and expertise were pooled. Beyond pandemic efforts, there are four ways to boost cooperation.
- Coordinating and deepening research since international collaboration is critical for innovation in global trade.
- Controlling synthetic drugs, based on the UN’s strategy. Regulating it impacts on the pharmaceuticals trade.
- Managing mental health to improve workforce productivity and, by extension, boost economy and trade.
- Increasing participation of aging populations since this opens new market segments
Future of global trade
What the future of global trade looks like?
Despite heightened geopolitical competition, governments and companies must practice ‘coopetition’ by “identifying avenues toward advancing shared interest that can exist despite competition.”
They will “use cooperation to beget cooperation,” meaning they’ll find opportunities to explore additional ways to work together and increase trust. This could eliminate unnecessary rivalry, such as the recent Alibaba-JD lawsuit.
Since no company, no matter how large, is exempt from changing global trade flows, cooperation “needs to be treated like a muscle that can be strengthened and can react well in the face of geopolitical shocks.”
You might ask how all of this influences supply chains.
MORE HERE: Strategic resilience: Adapting to changing climates in supply chain
About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
