How did trading change in the last 100 years?
Alexander Elder says:
“You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody.”
Trading is a concept of buying and selling products in the market to earn significant amounts of profits, and everyone knows that.
With the advancement of time and introductions of various trading aspects, the concept of trading has evolved across the globe in various ways.
With countries depending on trading that contributes half of their GDP, China is leading the chart list on the top by offering some of the best trading services within the country and abroad.
The past 100 years of China have witnessed a lot of changes in the trading industry and segments of society. International Trades, domestic trades, and other forms of trade are no exceptions to this.
The way that trading is performed across the globe is now becoming rapid, efficient, reliable, and just better when compared to the last hundred years.
It’s quite interesting to know how the trading business has evolved over the years, because of having a wider understanding and knowledge about the industry, that aids in providing a greater and better perspective when making some effective and important decisions.
Here are some of the main differences between the trading that was done before and the way it is done now:
1. Better modes of transportation.
In the early 1910s and 1920s, rails, ships, and horses were the major modes of transportation, and the era of automobiles had just begun.
With Ford launching its first few vehicles in the market from 1908 to 1920, it was considered one of the expensive modes of transportation for all the businessmen.
Just before Ford launched its vehicle in the market, there were hardly about 200,000 carrier vehicles that were traveling around the roads of China.
Therefore, automobiles were not considered to be amongst the modes of transportation back then.
However, with the development of the industry and modernization, it has become easier now for all the businesses to move their products and offer their services across the globe easily.
There are better shipping products, carriages, options, and facilities available to the businesses that they can opt for at cheaper rates.
This means that the rapid development in the industry, it has become easier for businesses to supply goods and products across the world without considering the distance as a major factor.
2. Advancements in the modes of communications, logistics, and other forms of supply chain technologies.
The technological advancements are something that you are well aware of, especially if you are working in this industry for a long period. Over a period of years, the developments in the technological sector are just amazing and remarkable.
Starting from the internet services to availing credit cards, everything has become easier for the current generation to access.
As years are passing by, the accesses to the technology is becoming better for all the business with the innovative and incredible inventions that are getting launched in the market.
But, now imagine, you are operating business back in the 1915s or 1920s, where you didn’t have access to technologies or even a calculator to calculate your profits or estimates.
Operations back then were difficult as access to the technologies wasn’t there or was minimal for all the businesses.
Everything that had to be done to run a business was completely manual and consumed a lot of time. Starting from transferring goods and services from one place to another to delivering a mail at your doorstep, everything consumed a lot of time, which would include months altogether.
Therefore, access to the technologies, better logistics, and incredible supply chain technologies have helped the industry to grow and reach to the current standards of ranking as it is right now.
So what glance do you have from Nicolas Darvas quote, which addresses nothing but the consequences?
“I believe in analysis and not forecasting”
3. Enhanced geopolitical relations.
Apart from that, people had to deal with the Great Depression that took place during the 1930s with many nations combating with the situations that were becoming difficult.
During this period of time, it was difficult for all the businessmen to trade their goods and services because of the tensions in the market that causing hamper to their businesses.
As time passed by, people and politicians started to realize and worked closely with each other to maintain peace and improve the relationships they had with each other to widen opportunities for trade.
In China which was under severe tension and political crisis during that time period worked closely with many politicians and businessmen across the globe to resolve issues. What was the outcome? China has become one of the most important and critical trading industries across the world right now.
Even though there are issues and problems in the trading industry in China with the rest of the world, however, there’s no hamper on the trade or goods that are supplied across the globe.
These are some of the best reasons that have helped China reach its current position in the market over 100 years.
Advancements in almost all the fields that are considered to be important in the world of trade have made it possible for the country.
The past hundred years for China was truly incredible for China without any benefit of the doubt.
The combination of modes of transportation, communication, technological aspects, and geo-political collaborations has helped the country to evolve as one of the critical players in the trade and commerce industry.
“What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower”