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Cloud Computing in International Trade

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Introduction

Digital technologies such as the use of robotics, cloud computing, and artificial

intelligence are widely applied by innovative companies. However, detailed empirical

evidence on the link between the utilization of digital technologies and various firm

performance dimensions needs to be included to be included. Cloud computing has

significantly improved firm productivity over the last decade seen by the increased use of the

firm's export technologies. Progress has been made by understanding AI impacts and needing

to be more informed in relation to its international dimensions. The approach makes it

possible for developing economies to catch up with developed nations as cloud computing

allows them to have a similar IT structure. The volume and role of cloud computing have

higher chances of increasing by improving ICT infrastructure in developing countries.

Regardless of the World Trade Organization's failure to acknowledge cloud computing, its

benefits have provided loyal customers with the transparency to access services globally.

Benefits of Cloud Computing in International Trade

Cloud computing has a wide range of characteristics that enable entrepreneurs to

improve the level of International Trade in developing nations. The approach comprises

computing facilities used to boost the services provided according to consumer demands.

Consequently, the approach plays a significant role in international trade by helping

businesses operate across different geographic borders. It improves trade efficiency by up to

5% and guarantees success for businesses in the international markets (Ahmedov, 2020, n.p).

The research has recommended different cloud service types used by developing countries in

international trade. Cloud computing tools such as document sharing, project management

platforms, and video conferencing help organizations engage with clients across the globe

(Sunyaev and Sunyaev, 2020, p.195). The tools ensure that teams in different geographic

borders access up-to-date information.

The other advantage of cloud computing computing for international trade is offering

potential and loyal customers the authenticity to access it from anywhere. The intimacy is

required because of the global nature of its trading philosophy with various users being

spread across different countries. Cloud computing is currently making advancements in

major trade financial players for providing software that promotes cloud connectivity.

Organizations and individuals participating in imports and exports of products use trade

finances that apply cloud computing models from banks with real transfer of finances

(Sunyaev and Sunyaev, 2020, p.196). The ease of collaboration associated with cloud-based

tools allows organizations to break down traditional trade barriers by reducing the friction

linked with cross-border transactions.

Critics point out that cloud computing reduces the urge for businesses to make upfront

investments in IT infrastructure, such as hardware and software components used to make

services readily available. However, research studies have shown that a large share of

organizations succeeded in developing new innovative products through the effective use of

Cloud computing (Ahmedov, 2020, n.p). Cloud computing is a catalyst for innovation,

providing businesses with access to cutting-edge technologies such as artificial intelligence

(AI), the Internet of Things (IoT), and blockchain. The approach in developing countries

needs to take advantage of e-commerce, given the ease of its interface through marketing and

product payment.

Moreover, the approach is highly recommended because it reduces the overall costs

for its users. Cost reduction can be noticed as the products do not require customers to use

special devices after purchasing them for maintenance purposes. Cloud computing offers

safer access to information stored on it and constitutes a safer way to store confidential

information that is encrypted to avoid information leaks (Sunyaev and Sunyaev, 2020, p.197).

Therefore, organizations need to increase awareness concerning the benefits of cloud

computing roles used to boost import and export trades through reliable e-commerce

operations.

The technologies provide a centralized system used to track goods from their origin

point to their final destination. The approach ensures that businesses can address delay issues

and cases of damaged goods. The rise of technological advancements in modern settings has

enabled SMEs to access new technology used to scale business operations without financial

challenges (Ahmedov, 2020, n.p). Therefore, the technology provides scalability used when

adjusting to fluctuation demands that are likely to be volatile. Moreover, tools used for data

processing and machine learning can be used to interpret market trends by optimizing the

supply chain to predict demand and improve decision-making. Companies can reach different

customers across the globe by giving localized experiences tailored to regional growth.

Importance of Cloud Computing in International Trade

The main importance of Cloud Computing in trade includes creating reliable

approaches used to increase the speed of data delivery when accessing information using

local information networks. Organizations and traders can use the approach to pay for

services based on usage and information that relates to the firm's foreign trade. The research

benefited from other previous studies in the field of cloud computing and foreign trade

systems used to analyze its effectiveness (Sunyaev and Sunyaev, 2020, p.198). For instance,

machine learning algorithms can optimize pricing strategies and demand forecasting, while

blockchain technology can streamline international transactions by providing transparent,

secure, and immutable transaction records.

International trade involves managing and handling huge amounts of organizational

data used to track customer preferences, inventory levels, and financial transactions.

Technology plays a vital role in improving supply chain management in global trade. Despite

the challenges of business complexities of international logistics, the approach can also create
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delays and inefficiencies, thus the need to encourage real-time tracking of products to ensure

they remain compliant. The technology allows businesses to store and manage organizational

data while also providing advanced analytics capabilities. Similarly, it reduces the need for

enterprises to upgrade and invest in expensive infrastructure by offering pay-as-you-go

packages used to boost on-demand services.

Effective cloud computing relies on the strengths of preferred network servers but not

on the personal features of a device. Despite the effectiveness of an individual's personal

computer or laptop, cloud computing services guarantee high-end and safe services without

interference (Sunyaev and Sunyaev, 2020, p.198). The advances of cloud computing are

achieved through the successful integration of communication and infrastructure technology

that allows businesses and customers to interact across different geographic borders (Alam,

2020, p.108). Cloud computing offers organizations with enhanced business continuity and

disaster recovery solutions through services that provide data backup, redundancy, and the

ability to restore vital business systems shortly after an outage event (Li et al.,2021, p.101).

The dependability of the systems makes cloud computing initiatives considered an attractive

approach for organizations that aim to expand their business margins in different countries.

Exporters who provide goods and services to customers in different demographics are

always assured of their product protection; thus, cloud computing is used in export trades to

guarantee timely payment of goods and services that are delivered to customers at no risks.

Cloud computing models use an STP (Straight-Through Processing) rate when completing

trade transactions. Therefore, higher STP rates mean rapid communication and fast document

verification with the bank. The recommendation suggested for developing countries is to

increase trade websites because its communication protocol guarantees increased STP rates.

Unexpected disruptions such as political instabilities, natural disasters, and

technological failures have a high chance of negatively affecting business operations.

Moreover, studies show that reliable cloud computing provides enhanced business continuity

and Disaster Recovery processes by ensuring clients have overseas data backups that can be

accessed in real time in the event of a disaster. Cloud computing plays an indispensable role

in the current international trade by providing organizations with various tools used to

streamline operations that reduce costs, and enhance global collaboration (Alam, 2020,

p.109). Therefore, leveraging cloud computing tools allows organizations operating in

international borders to gain valuable insights used to reduce overall sales, boost efficiency,

and identitying new business opportunities.

Opportunities of Cloud Computing in International Trade

Developing nations are taking initiatives to implement cloud computing initiatives by

considering policies used to boost domestic cloud computing industries. Therefore, foreign

trade systems can benefit from cloud and online capabilities by improving efficiency in

developing countries. In the modern digital era, several developing nations try to profit from

international cloud computing players such as Azure, Microsoft, and IBM through

established cloud computing centers (Li et al.,2021, p.109). The research shows that markets

of developing countries constitute important market factors used to illustrate the global shift

towards cloud computing.

Moreover, companies can penetrate and attract customers across the globe by

localizing experiences that suit regional currencies, languages, and preferences. The latest

cloud technologies are seen to support seamless integration with international payment

options that ensure reliable cross-border financial transactions (Ahmedov, 2020, n.p). The

avenue constitutes a critical factor that enhances the global flow of goods and services.

Critics believe that different visibility levels can be applied to the supply chain to help reduce

risks and improve the overall efficiency of international trade (Alam, 2020, p.111). Different
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computing models can be used to improve operational efficiency for seamless

communication across different geographic borders.

Regardless of public cloud computing models being the preferred model for most

international traders, there exists a dire need to address potential challenges associated with

providing all computing applications and reliable resources to its clients. Therefore,

organizations are encouraged to focus more on private cloud computing services because it is

less prone to rising cyber-attacks and fraudulent activities (Chinthapatla, 2024). Unlike public

cloud computing services, private servicers allow for a single organization or individual to

rent out their preferred servers to work for confidential matters in terms of privacy, quality,

and service efficiency (Li et al.,2021, p.123). However, organizations dealing with a huge

client base tend to rely solely on hybrid cloud computing services because it allows

organizations to integrate private and public cloud models allowing each model to improve

efficiency.

On the other hand, the growth of mobile phone technology has provided opportunities

for providers to create simple application interfaces that guarantee cloud computing

connectivity. The approach has improved the dependency of private and public organizations

to rely on the use of cloud computing given its capability of mobile phone application

connectivity (Alam, 2020, p.113). Similarly, it has improved the trust of clients when using

private cloud computing services. The mobile device connects to the preferred cloud service

provider for cloud computing with services available making developing countries narrow

competitiveness with international rivals. For instance, mobile money applications in

countries such as Kenya and Nigeria are growing as major financial tools in remote

demographics.

The availability of a dependable internet connection constitutes a primary success of

effective cloud computing. However, developing countries need a reliable internet provider,
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thereby hindering efficient cloud computing. Given the reliability of cloud computing,

countries such as Egypt, Saudi Arabia, and Nigeria have taken positive interventions by

entering the fast-changing environment of cloud computing. Investors are encouraged to take

advantage of cloud computing in international trade to improve the participation of

developing countries in global trade forums. Statistics show that international trade can gain

valuable insights that improve efficiency, reduce costs, and identify new business

opportunities by leveraging cloud computing tools (Ahmedov, 2020, n.p). The approach

provided businesses with the infrastructure required to engage in international e-commerce

through various online platforms.

Potential Challenges of Cloud Computing

Statistics show a need forneed for cloud computing awareness seen by moderate ICT

infrastructure levels from the government to show support for cloud computing that is

growing in international boundaries (Chinthapatla, 2024). On the contrary, critics assert that

the reduced number of skilled software experts is categorized as the primary cause of critical

problems when establishing SaaS and PaaS in developing countries. Effective cloud

computing services, such as the capabilities to manage data efficiently, provide real-time

access to global markets when involved in cross-border commerce (Li et al.,2021, p.205)..

The technology of cloud computing is changing business models by creating new business

opportunities for organizations to enhance product knowledge and customer experiences.

Several developing nations are seen to need to make better efforts when creating legal

frameworks concerned with cloud computing, thus the need to address such matters in detail.

For instance, the poor efforts are attributed to negative notions and fear of losing data in the

cloud, mainly from frequent electric power outages encountered in developing countries

(Chinthapatla, 2024). A survey concluded that the primary factor in slowing cloud computing
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initiatives from the government and private investors in development through a face-to-face

interview linked the drawbacks to fear of data loss and rising cyber-attacks.

International trades mainly rely on data exchanges and digital transactions,

confirming the essentials of cyber security (Ahmedov, 2020, n.p). When aiming to provide

exceptionally could computing services, cloud providers are encouraged to invest heavily in

security measures that can be used to counteract increased cyber-attacks by encouraging

multi-factor authentification, reliable data storage, and encryption (Li et al.,2021, p.213). The

approach allows businesses to remain compliant with federal bodies responsible for

protection regulations. Compliance initiatives provided by cloud computing help international

businesses navigate legal complexities when operating in different nations, thus ensuring that

they meet the necessary standards vital for financial transactions and data protection. The

system ensures that international trade activities proceed smoothly during events of

unexpected disruptions.

Conclusion

Cloud computing has increased the potential for organizational growth by providing a

user-friendly finance application used to improve international trade. The benefits of cloud

computing in developing nations range from affordable computing infrastructure and ease of

access, thereby making it more user-friendly. Modern-day cloud computing comprises

computing facilities used to boost the services provided according to consumer demands.

Google documents helps investors to finalize spreadsheet processes as an approach used to

reduce expenditure. For instance, investors and consumers can use a standardized application

to exchange confidential documents in real-time. Cloud computing services occur through a

network that provides users with access to computing services using a stable internet

connection despite its being prone to potential cyber-attacks. Providing potential cyber-attack

application suites is a likely measure used to keep investors and clients up-to-date with curt
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cyber-related attacks through the effectiveness of cloud computing services. It reduces the

need for enterprises to upgrade and invest in expensive infrastructure.

References

Ahmedov, I., 2020. The impact of digital economy on international trade. European Journal

of Business and Management Research, 5(4).

Alam, T., 2020. Cloud Computing and its role in the Information Technology. IAIC

Transactions on Sustainable Digital Innovation (ITSDI), 1(2), pp.108-115.

Chinthapatla, S., 2024. Data Engineering Excellence in the Cloud: An In-Depth Exploration.

Sunyaev, A. and Sunyaev, A., 2020. Cloud computing. Internet computing: Principles of

distributed systems and emerging internet-based technologies, pp.195-236.

Li, F., Lu, H., Hou, M., Cui, K. and Darbandi, M., 2021. Customer satisfaction with bank

services: The role of cloud services, security, e-learning and service quality.

Technology in Society, 64, p.101-487.