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Effects of Global Networks of Global Commodity Exchange Essay

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Updated: Dec 10th, 2021

Trade has evolved over the history of humanity. As observed by Strayer (2008), each civilization seeks ways to ease the process of exchange of goods and services in order to achieve maximum utility from their possessions. Similarly, individuals struggled in their day-to-day activities in search of new opportunities through which they could ply their trade. As a result, people have crossed political and cultural boundaries giving rise to Trade Diasporas.

As outlined in both stories, the lack of proper and standard trading relations among the countries and traders in the past was a major setback to the trading process (Liss, 2004 and Strayer, 2008). The traders were left at the mercy of unscrupulous competitors whose sole aim was to frustrate their search for a better life in the diaspora. Traders were more focused on short-term success and unaware of the benefits of long-term business relationships.

As observed by Liss (2004), the challenges facing the Diaspora have been a major setback to the process of trading. The foreign setting presented challenges to the Diaspora, owing to the fact that the response of the natives was unpredictable. As a culmination of numerous factors discussed below, the creation of networks linking the global community eased the way in which trade Diasporas operated.

Competition drove traders to the heights of inventing new models of improving the provision of goods and services. As a result, traders were able to access new markets for their products. New markets were an opportunity for the traders to avail goods to satisfy varied human needs. As a result, the traders were exposed to different cultural and socioeconomic settings. The variations in the characteristics of the targeted consumers necessitated differentiation of the goods governed by the specific needs of each category of customers.

Integration of the global trading system incorporated the establishment of efficient communication channels. Such communication channels are key to the trade process since, in the presence of competition, information is a strategic tool. The evolution of communication media availed by the invention of information technology provided the traders with the ability to predict demand and supply needs of different geographical locations, thereby reducing the uncertainty lacing market conditions.

Armed with information, traders were able to appreciate the needs of their targeted consumers thereby altering the volume and characteristics of the commodities. Under such conditions, the Diaspora was as well-armed as the natives. Similarly, information relating to the intrinsic characteristics of potential consumers was availed to any interested individual. The social-cultural and economic characteristics of the global citizen were common knowledge.

As a result, traders in Diaspora were able to interact with natives without crossing cultural and social constraints (Strayer, 2008). By so doing, social and business relationships were carved out of appreciation of the cultural values dear to the locals. Contrary to the preceding eras, long-term relations developed borne out of the cultural exchange.

In spite of their contribution to the trade process, the natives always treated trade Diaspora with suspicion (Liss, 2004). Good tidings were met with paltry rewards while in times of trouble; they were the most common scapegoats. However, global networks have streamlined the trade process by introducing laws that govern the process of trade. Under such guidelines, legitimate business is protected from exploitation by any cunning individuals. Such guidelines are avenues of promoting diplomatic relations that form the basis for global cooperation. Thereby countries with sound trade relations stand to benefit from the relationship.

As outlined in the story of Miguel, his woes were because of a lack of a mechanism to absorb loss while in a foreign country. After losing his business due to unfair practices, he found himself foraging for food just to survive one more day. In the modern world, globalization has given rise to numerous avenues through which the security of trade is assured. Availability of capital on a global scale enables traders to access the funds required to sustain a going concern. Such capital can be sourced from foreign or local sources. The availability of choices has enabled many traders to survive the worst business conditions and environments.

The exchange of ideas on a global scale has also lead to the development of principles that govern the conduct of business. In the early days, traders relied on primitive principles based on frail assumptions. Thus, success in the domestic or local marketplace was the greatest achievement. However, increased interactions on a global scale resulted in the emergence of strategic operational models aimed at streamlining the conduct of business. Specialization emerged with the realization that excellence was the only pathway to success. Traders changed the way they plied their trade and concentrated on providing the commodities to which they have a competitive advantage.

Trade relied on rumors and deceptions that made it impossible for some individuals to succeed. By spreading half-truths and fabricated stories, mischievous native traders were able to gain an advantage over the Diaspora. Since most locals trusted the position of native trades, those in Diaspora were faced with a major handicap. Under the clutches of the local traders, the traders in Diaspora were reduced to intermediaries and agents who earned meager returns from their efforts.

The emergence of global networks contributed to the introduction of import and export trade. As posited by Liss (2004), with the increased levels of production and amplified demand for goods and services, foreign trade was inevitable. Mass production became the most appropriate venture since the consumer base increased significantly. Subsequently, the need for cooperation stemmed from the very act of specialization. Since it was uneconomical to produce all the commodities demanded, traders sought to supply goods on a global scale.

The magnification of global networks relating to commodity exchange over the past century has accrued immense benefits to traders. The much-anticipated change is accredited for the ease with which traders are able to ply their business across social, political, and cultural boundaries. What was once a hide-and-seek game among traders has become a symbiotic relationship whose success relies on the contribution of each player. Monstrous setbacks have been conquered leading to a more transparent system.

References

Cohen, Robin. “Global Diasporas: An Introduction Global Diasporas”. New York: Routledge, 2008 p10-46

Liss, David. “The Coffee Trader: A Novel Ballantine Reader’s Circle”. New York: Ballantine Books, 2004

Sassen, Saskia. “Global Networks, Linked Cities” New York: Routledge, 2002. p 56-93

Strayer, Robert. “Ways of the World: A Brief Global History” Bedford/St. Martin’s, 2008

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