Driving Economic Growth Through Cross-Border E-... VERIFIED
The United States, Mexico, and Canada have reached an agreement to modernize the 25-year-old NAFTA into a 21st century, high-standard agreement. The new United States-Mexico-Canada Agreement (USMCA) will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America.
Driving Economic Growth Through Cross-Border E-...
The United States, Mexico, and Canada have reached an agreement on a modernized, high-standard Intellectual Property (IP) chapter that provides strong and effective protection and enforcement of IP rights critical to driving innovation, creating economic growth, and supporting American jobs.
It is now well accepted that cross-border e-commerce can be a powerful driver of economic growth, inclusiveness and job-creation in both developed and developing countries, as it offers to even the smallest firms market access to an unprecedented number of customers and lowers the costs of cross-border trade. However, many challenges remain and several obstacles keep SMEs from maximizing the economic opportunities opened by cross-border e-commerce. In this working session, the latest trends in cross-border e-commerce will be explored as well as the impact it has on overall trade flows in developed and developing countries, and what SMEs need to do to be ready to capture this opportunity.
The first funding opportunity details the application process and outlines how the Department will evaluate applications, including a primary focus on how projects advance U.S. economic and national security. Applications will also be evaluated for commercial viability, financial strength, technical feasibility and readiness, workforce development, and efforts to spur inclusive economic growth. Starting today, the Department strongly encourages all potential applicants, including those for future funding opportunities, to submit statements of interest so it may gauge interest across the semiconductor ecosystem and begin preparing for application review. Read more about the application and evaluation process here.
The driving factors behind this growth are increased internet and mobile phone use, as well as improved logistics and e-payment systems, which heightened convenience and consumer confidence to shop online. According to the Digital Economy Promotion Agency, the revenue in the e-commerce market is estimated to amount to $4,492 million in 2019 with an annual growth rate of 9.2 percent resulting in a value of $6,384 million by 2023. The mobile commerce market is expecting a compound annual growth rate of 12 percent to $25 billion by 2023, driven by rising smartphone penetration (around 40%) and an established preference for mobile over desktop shopping.
The external macro environment is a prerequisite for the existence of a business and has a direct role in driving, constraining, and interfering with the continued development of the business (Raphaël et al., 2004). To develop cross-border e-commerce, we must first make a good judgement of the external environment, reasonably select the target market and conduct relevant strategic analysis in order to make cross-border e-commerce more efficient out of the country and take root in the international market.
Based on the above construction ideas, according to the principles of scientific validity, accessibility, applicability, etc., of data, this study has constructed a cross-border e-commerce overseas strategic climate evaluation index system containing three dimensions, as shown in Table 1. Scientific and applicability means that the selected indicators should be suitable for cross-border e-commerce, can effectively represent the external strategic climate, and the data sources are accurate, real and valid. Among the indicators of the same category, those with strong representativeness are selected to reflect other similar indicators. Accessibility means that there should be a way to source data. The lack of data on some Belt and Road countries has a great influence on the selection of evaluation indicators. In order to ensure the reliability of the evaluation indicators, this study mainly selects the relevant indicators from the world authoritative database. The selection of indicators should also be systematic and hierarchical to ensure that the overall situation can be comprehensively evaluated and the depth of evaluation can be reflected. Based on this, the evaluation index system of cross-border e-commerce overseas strategic climate is constructed. The primary indicators are political factors, economic factors, social factors, technological factors, environmental factors, and legal factors, including 13 secondary indicators and 26 tertiary indicators.
Most of the existing methods for evaluating the offshore strategic climate are subjective analysis or traditional mathematical methods. By establishing an indicator system and combining machine learning with the evaluation of the offshore strategic climate of cross-border e-commerce, this article breaks through the traditional method of evaluating indicator systems and opens up a new method of evaluating the offshore strategic climate of cross-border e-commerce and a new field of application of machine learning. This makes the evaluation process more rational and scientific. This is the innovation of this article and a new attempt. Of course, there are other models of machine learning than the Decision Tree model and the AdaBoost model. The Decision Tree model has the advantages of requiring little background knowledge, low computational complexity and strong explanation, the AdaBoost model makes good use of weak classifiers for cascading and has advantages such as high accuracy, so they are chosen for this study.
The relevance of foreign direct investment (FDI) as a source of economic activity has increased rapidly over the last decade. Between 2000 and 2016 the share of FDI stock in global GDP increased from 22% to 35%. Following a decline during the Great Recession, mergers and acquisitions (M&As), the most dynamic component of FDI, have recovered, reaching a record value of USD 1.2 trillion in the first quarter of 2018. The intensification of FDI activity has important implications for both origin and destination countries in terms of, for example, economic growth, productivity, wages and employment. Moreover, the expansion of multinational enterprises (MNEs) has been accompanied by the creation of complex cross-border production chains, which also has important implications.
First, by investing abroad, companies may seek access to promising new markets. From this perspective, inward FDI should tend to be positively correlated with the size of the host country economy and its market potential in terms of economic growth.[11]
The economic impact of regional integration in Europe has been widely addressed in the literature. The main focus has been on the impact on trade, but some studies have also given insights into how the EU and, in particular, the euro area have affected FDI among their members. These studies[43] tend to show significant growth in FDI among EU Member States. As regards EU membership, the estimated increase in FDI ranges between 28 and 83 percentage points, while the incremental effect of euro area membership ranges between 21 and 44 percentage points. However, these studies consider different periods and different sets of countries, so they are not fully comparable and they measure the impact of EU accession and euro adoption for different countries.
When negotiations for NAFTA began in 1991, the goal for all three countries was the integration of Mexico with the developed, high-wage economies of the United States and Canada. The hope was that freer trade would bring stronger and steadier economic growth to Mexico, by providing new jobs and opportunities for its growing workforce and discouraging illegal migration. For the United States and Canada, Mexico was seen both as a promising market for exports and as a lower-cost investment location that could enhance the competitiveness of U.S. and Canadian companies.
Some studies have acknowledged that CBEC reduces transaction costs, increases trade efficiency, and generates competitive advantages. First, through CBEC platforms, acquiring information for both sellers and buyers becomes easier, which contributes to reducing the information cost [36,37,38,39]. Second, in CBEC platforms, price and other information are available online and negotiation becomes easy for trading partners when comparing products and carrying out transactions, thus, reducing negotiation costs [8, 40]. Third, unlike in traditional cross-border trade, the original business and final customers can be connected directly through CBEC platforms, reducing the intermediate steps of transactions, and thus reducing middlemen costs [8, 40, 41].
Third, with the growth of CBEC in China, the distance effect on services exports is more likely to be less than that on goods exports. Increased transportation costs and information-related costs due to distance between two locations increases the trade costs. However, doing business through e-commerce platforms, improves productivity and helps to remove the barriers caused by distance, by offering efficient mobility and easy accessibility to distant knowledge, thereby reducing the cost. In particular, our result indicates that the use of e-commerce reduces the distance-related costs more in services trade than in goods trade. This is because goods traded through e-commerce platforms still require physical transport, so distance-related costs remain important in online goods transactions. However, many emerging services (e.g., financial services) can be traded over the Internet without the need for producers or consumers to cross geographical borders, significantly reducing the costs associated with distance.
Finally, the results show that the impact of CBEC on service exports increases over time, whereas the impact on goods exports decreases annually. This indicates that compared with trade in goods, the role of CBEC in promoting trade in services has been significantly enhanced year by year. The increased efficiency of e-commerce has caused the transaction costs to continue to decline, and enhanced the competitiveness of service trade. In addition, through the use of e-commerce, previously non-tradable activities (e.g., computing, accounting, research and development) has become tradable, and a wide range of services such as financial, legal, and telecommunications services would increasingly be carried out by CBEC. Therefore, the expanding scope of trade in services is expected to further promote the growth of trade in services. 041b061a72