Blockchain Applications in International Trade Management

Abstract

The process of international trade management incorporates multifaceted activities in the form of documentation, payments, logistics organization, lawful regulation, and hazardous activity relief among various stakeholders and jurisdictions. The traditional systems of trade are normally filled with inefficiencies, absence of transparency, excess costs of transaction, and prone to fraud. Blockchain technology is a disruptive digital technology that could revolutionize management of international trade as it allows management to have secure, transparent, and decentralized systems of transactions. This paper analyzes the uses of blockchain technology within the international trade management with emphasis laid on its effectiveness in improving transparency, traceability, efficiency, and trust among the players in the global trade. The paper provides the synthesis of the insights provided by the academic literature and industry reports, and global trade initiatives through the use of a descriptive and analytical research design with secondary data to investigate the main blockchain use cases to be discussed, including smart contracts, trade finance, supply chain tracking, and customs management. The results suggest that blockchain has the potential to play a significant role in decreasing the processing time, paperwork, and costs of operation and enhancing adherence to and control of risks in international trade. Nonetheless, there are still obstacles associated with scalability, interoperability, regulatory uncertainty and implementation of technology. The paper presents strategic implications as they relate to the policymakers, trade institutions, and firms that wish to use blockchain as a way of establishing more resilient and efficient global trade systems.