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Why is Global trade slow and what to expect in the coming years

Why is Global trade slow and what to expect in the coming years

Released Wednesday, 21st September 2016
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Why is Global trade slow and what to expect in the coming years

Why is Global trade slow and what to expect in the coming years

Why is Global trade slow and what to expect in the coming years

Why is Global trade slow and what to expect in the coming years

Wednesday, 21st September 2016
Good episode? Give it some love!
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imageThe burning question in the global trade sphere, why Global trade is so slow? Last week we updated and mentioned a few factors that contributed to the global slow down which were China's contracted economy, low commodity demand and weak global economies including that of the United States and the EU. Today I will go a little further in detail of why these have transpired and what the future holds for global trade enthusiast as myself and other global players with much bigger investments and business at stake.China's halting economy mainly its manufacture sector has contributed to the low output of exports from Asia destined to the developed world. China has reduced it capacity to manufacture low cost products such as: clothes, shoes, appliances and other low range items. Now she looking to produce high cost manufacturing goods such as smartphones, and chips such as semi-conductors for the technological sectors. Although other nations will take up the slack from China deindustrialization, including Taiwan, Vietnam, Bangledesh and others. China still represents nearly 45% of the global trade output for 2016. Manufacturing as a whole is low in output in the global context and that is the next topic. Automation, robotics and other lean and simulated production will take place in the future that will cause a slowing of the global output for exports world wide.Low demand for commodities which are subjected to boom and bust cycles can never be totally predicted at which point it will take place, low demand for oil, gold, ores, copper will effect the slow flow of traffic and finance throughout the globe. So with this slow output and demand what is next for  global output, I have research and read over several publication that contend that the reorganisation of labor will have a significant impact on trade going forward. Automated technology, robotics 3D manufacturing will be the next labor force for global output coupled with an increase in technology and app development. Also manufacturing and labor will see a rise in the emerging world that is Southeast Asia and Africa. Africa will also benefits as a new players in the manufacturing seen. East Africa notably, Ethiopia Kenya and Rwanda will benefit handsomely from China's reorganisation of its labor sector. Africa is dawn to have the world youngest working population with 45% of Africa's total work force under the age of 15 as we speak. Indonesia, Bangladesh Vietnam in the east will be the first in line to received technological transfer from China while India already is expected to be the leader in exports in the coming future.With these current trends ahead of us, it brings new opportunity and excitement for those interested in trade activity and global topics. The world is experiencing a slow flow of trade, labor is suffering due to slow demand and all this needs to be reorganised, new trends are taking place, downsized multinational corporation, divestment of resources and the general low level of growth presents challenges but with the correct outlook, education and knowledge of the problem we as global citizen can overcome this dark chapter of global affairs.
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