Analysing the nexus between Trade, Science and Technology…By Emmanuel Abiodun Joseph

Introduction

Modern technology usually refers to the combination of computers and communications devices which in the last several decades have changed the way in which we handle information. These changes are having a substantial impact on both the practice and the law of international trade, notably in the use of electronic documents to replace papers, the so-called electronic data interchange (EDI). The same technology permits services to be offered in remote locations which previously would have required a substantial local presence. The science of creating and producing will continue to change the way in which large cargoes can be handled and the way in which large carriers may be operated. More refined models of stock control, only possible with substantial computing facilities, will continue to change the pattern of stock replacement and, consequently, the pattern of stock movement and the international trade in goods. (Alan, 9 – 11, 1992).

While this particular form of modern technology undoubtedly is having its impact on both the practice and the law of international trade, it is by no means the only modern technology exerting such an influence. We can expect the value of trade in biological products to increase as a proportion of the total value of world trade. The use of cell technologies to produce monoclonal antibodies and of genetic manipulation to produce new and more profitable crops are but two examples of an industry with almost unlimited trade potential. Therefore it is no doubt that trade, science and technology are interdependence and with their nexus or relationship towards each other they have made the world a better place and also made a remarkable improvement in the living condition of man. The piece of work will analyse the benefits of the relationship between these three concepts (trade, science and technology), it will also determine it disadvantages after which is the conclusion.

Conceptual Clarifications

Trade

Trade involves the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Trade exists due to the specialization and division of labour.  According to Roper (1978) Trade refers to buying and selling of goods and services for money or money’s worth. It involves the transfer or exchange of goods and services for money or money’s worth. The manufacturer or producer produces the goods then moves on to the wholesaler, then to retailer and finally to the ultimate consumer.

Science

According to Morris (2008) Science is the concerted human effort to understand, or to understand better, the history of the natural world and how the natural world works, with observable physical evidence as the basis of that understanding

Technology

According to David (2003) the word technology comes from the Greek words techne which means “craft” and logy which means “scientific study of”. So technology means the “scientific study of craft”. Craft here means any method or inventions that allow humans to control or adapt to their environment.

Theoretical Framework

The theory put into consideration in this work is the globalization theory. Globalization is a theory whose aim includes the interpretation of the current events on the international sphere in terms of development, economic conditions, social scenarios, and political and cultural influences. In more specific terms it is important to mention that the globalization theory implies a key element concerning integration -integration regarding international trade, the international financial system, technology and the act of communication among states

Globalization theory focuses on a process of accelerated communication and economic integration which transcends national boundaries and increasingly incorporates all parts of the world into a single social system (Burnell P, Randall V. 2008).

Peter (2002) describes globalization as the integration of economic decision making  such as consumption, investment and saving across the world , this implies that globalization is a process that creates global market where all nations are compelled to participate, it consist of a relationship between sovereign countries through trade and capital flow.

The key elements of this theory involves the inter connectedness of sovereign states through trade, science and technology, the effect of this interconnectedness or relationship on the international system be it positive or negative. Globalization however comprises of four dimensions which are; economic, cultural, political and ecological, our focus in relation to the topic concerns basically economic globalization. Shangquan (2000) conceptualizes economic globalization as an increasing interdependence of world economies as a result of the scale of cross border trade relations flow of international capital and rapid spread of technologies.

The Relevance of this Theory Include the Following:

This theory is relevant because it shows the integration of the world as a global village which help in making it easy for state to relate with each other in the international scene for the main purpose of achieving their foreign policy.

Second, under current global conditions, and when we are studying a particular system -i.e., financial or trade sphere- it is not as important as previously thought to use the nation-state category as a unit of analysis, since global communications and international ties are making this category less useful.

Third, with more standardization in technological advances, more and more social sectors will be able to connect themselves with other groups around the world, which implies faster and easier communications and economic transactions.

It also deals with analysing the inter relationship between trade and science and technology in the international scene. Additional employment in the capital goods sector where new machines are being produced, decreases in prices resulting from lower production costs on account of technological innovations,

 

The Nexus between Trade, Science and Technology

Science and technology or productive technology can be traced to the 18th century industrial revolution in Europe. It was one of the major reasons for the increased trade among Europe and the whole world. (Akpuru, 2002: 45).

Science and technology is important in trade because it accounts for productive efficiency and mass production. It is as a result of technology that industry has supremacy over agriculture.

Technology has contributed greatly to trade. Today it is the nucleus of extractive, manufacturing and distributive industries, including the revolution presently occurring in the agricultural sector.

It also had an impact on global trade in the sense that less advanced countries will like to trade with countries with technologically advanced countries. For instance, 15 years ago Nigeria had no Mammogram or MRI scan but now they have it and this has affected their trade with the global world because both neighbouring and distant countries will like to purchase these services. It can also be viewed at a totally different angle. Due to lack of trained personnel or professionals to operate these machines or render these services, she might decide to import the necessary labour or skill from overseas.

A significance of modern production system is heavily technologically. This can be seen in the case of the multinational corporations in Nigeria. These firms or companies are successful in their host countries more than the local industries present there due to the importation of foreign technology. An example is Julius Berger Construction Company.

The Benefit of the nexus between Trade, Science and Technology

Use of Technology in Business:  today business can save money by using technology to perform certain talks.  For instance if you operate a manufacturing business instead of bringing so many people to work in certain areas, with the involvement of machines it will therefore lead to rapid production.

The Using of Technology in Communication: unlike in the past when communication was limited to litter and waiting for those posted services to derive your message. To technology has made the field of communication easy.

The Use of Technology in Education. Also technology has made a very big change in the world today as it has ensured easy access for business men to get acquainted to learning facilities and also to acquire basic knowledge on how to handle a particular business since the requirements necessary for that particular line of business have been acquired or achieved, therefore this serves as one of the major benefits of technology to trade.

Use of Technology in Purchasing: technology has also made the buying and selling of goods and services so flexible with the introduction of e-payment systems like PayPal. Com and square wallet app, users can easily purchase anything online without living to comfort of their home.

The Use of Technology in Agriculture: this has to do with the invention of machines for farmers, they can use a farm machine like farmgraze, to work faster and be more accurate while in the field and off the field.  For instance farmgraze machine will help the farmers manage their grass more effectively by suggesting the cheapest feed for their livestock.

The use of technology in transportation: The invention of cargo train, cargo plane and large ship such as Allure of the sea and cargo ship are used in the transportation of finished goods from one country to another so as to facilitate international trade.

Use of Technology in the Banking: now electronic banking moving money has become so simple. The invention of visa electron has made it simply to move with more money without having any fears of getting robbed on the way. You can buy and anything with a visa electron card, so in this case you do not have to move with cash. Spero, (1980).

The Disadvantages of the Relationship between Trade Science and Technology

Beside the numerous advantages of science and technology in trade, there are also some disadvantages these include the following:

Over Dependency: the disadvantages of science and technology in trade have created dependency in the sense that those countries which are not technologically advanced now depend on the countries which are technologically advanced.  As a result of this, the advanced state uses the opportunity to exploit the underdeveloped or developing state.

Colonialism: colonialism can be defined as the total political, economic and socio-cultural domination of a stronger state over a weaker state.  As a result of the discovery and the advancement of in science and technology brought about the overproduction and under consumption of goods and service which then result for the advanced state to search for market where they can sell their goods and service which then lead to colonialism of third world states.

The Production of Substandard Product:  Again, another disadvantage of science and technology in trade is that it aids in the production of substandard product. Also through advanced medium of communication this substandard goods are introduced into 3rd world countries.

Employment: science and technology is often accompanied by industrialization. Industrialization entails the use of machines which is aimed at mass productivity. Once this is done, it leads to unemployment because machines now take the position of humans who were willing to work.

Environmental Degradation- Most multinational corporations who are sited in host countries amount for the environmental degradation of such host countries. This might be through oil spillage, air pollution and water pollution. An example is a case of Shell petroleum that has issues of oil spillage in most riverine areas. This is the reason why they have decided to go offshore.

It has also affected the health of individuals. When these Multinational corporations degrade the environment it might affect the health of the individuals living in that location. An example can be seen in the case of gas flaring in Nigeria. The people located in the region where the gas is flared tend to develop respiratory illness and mostly cancer.

Conclusion

Conclusively it is very obvious and apparent that science and technology has had a great impact on trade, but in reaction to the question above this explains that the relationship which exists between trade, science and technology is a double edge sword. So therefore in the course of this work we have been able to explained the nexus between these three subject matters as well as the benefits between them and also the disadvantages of the relationship between trade, science and technology have been analysed. Hence one can say that these three concepts are interrelated and interdependent.

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Alan L. T. (9 – 11, 1992) Conference on International Business Law, September; Retrieved from http://austlii.edu.au/~alan/scibl.html on 13th June, 2015.

Morris. C. (2008). The Deep Structure of Biology, Templeton Foundations Press, W. Conshohocken PA.

David C. Lindberg (2007). The beginnings of Western science: the European Scientific tradition in philosophical, religious, and institutional context, Second ed. Chicago: Univ. of Chicago Press

Roper, T. (1978) Approaches and Theory in International Relations, London; Longman.

Peter Burnell, Vicky Randall (2008), Politics In Developing World. New York: Oxford University Press.

Peter, O.N. (2002) . Restrictions Economy through Privatization: The Economist 4

Shangquan G. (2002). Economic globalization: trends, risks and risk prevention, New York. Www.

Un.org/esal/policy/devplan/index.html

Akpuru Aja (2002) Selected Themes in International Economic Relations: Understanding trends of Globalization and Regionalization. Enugu: Nigeria.

Spero, Jona E., (1980) The Politics of International Economic Relations, London, George Allen & Unwine, , chapter one (pp.1-12)

 

Introduction

Modern technology usually refers to the combination of computers and communications devices which in the last several decades have changed the way in which we handle information. These changes are having a substantial impact on both the practice and the law of international trade, notably in the use of electronic documents to replace papers, the so-called electronic data interchange (EDI). The same technology permits services to be offered in remote locations which previously would have required a substantial local presence. The science of creating and producing will continue to change the way in which large cargoes can be handled and the way in which large carriers may be operated. More refined models of stock control, only possible with substantial computing facilities, will continue to change the pattern of stock replacement and, consequently, the pattern of stock movement and the international trade in goods. (Alan, 9 – 11, 1992).
While this particular form of modern technology undoubtedly is having its impact on both the practice and the law of international trade, it is by no means the only modern technology exerting such an influence. We can expect the value of trade in biological products to increase as a proportion of the total value of world trade. The use of cell technologies to produce monoclonal antibodies and of genetic manipulation to produce new and more profitable crops are but two examples of an industry with almost unlimited trade potential. Therefore it is no doubt that trade, science and technology are interdependence and with their nexus or relationship towards each other they have made the world a better place and also made a remarkable improvement in the living condition of man. The piece of work will analyse the benefits of the relationship between these three concepts (trade, science and technology), it will also determine it disadvantages after which is the conclusion.

Conceptual Clarifications

Trade
Trade involves the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Trade exists due to the specialization and division of labour. According to Roper (1978) Trade refers to buying and selling of goods and services for money or money’s worth. It involves the transfer or exchange of goods and services for money or money’s worth. The manufacturer or producer produces the goods then moves on to the wholesaler, then to retailer and finally to the ultimate consumer.

Science
According to Morris (2008) Science is the concerted human effort to understand, or to understand better, the history of the natural world and how the natural world works, with observable physical evidence as the basis of that understanding

Technology
According to David (2003) the word technology comes from the Greek words techne which means “craft” and logy which means “scientific study of”. So technology means the “scientific study of craft”. Craft here means any method or inventions that allow humans to control or adapt to their environment.

Theoretical Framework

The theory put into consideration in this work is the globalization theory. Globalization is a theory whose aim includes the interpretation of the current events on the international sphere in terms of development, economic conditions, social scenarios, and political and cultural influences. In more specific terms it is important to mention that the globalization theory implies a key element concerning integration -integration regarding international trade, the international financial system, technology and the act of communication among states
Globalization theory focuses on a process of accelerated communication and economic integration which transcends national boundaries and increasingly incorporates all parts of the world into a single social system (Burnell P, Randall V. 2008).
Peter (2002) describes globalization as the integration of economic decision making such as consumption, investment and saving across the world , this implies that globalization is a process that creates global market where all nations are compelled to participate, it consist of a relationship between sovereign countries through trade and capital flow.
The key elements of this theory involves the inter connectedness of sovereign states through trade, science and technology, the effect of this interconnectedness or relationship on the international system be it positive or negative. Globalization however comprises of four dimensions which are; economic, cultural, political and ecological, our focus in relation to the topic concerns basically economic globalization. Shangquan (2000) conceptualizes economic globalization as an increasing interdependence of world economies as a result of the scale of cross border trade relations flow of international capital and rapid spread of technologies.

The Relevance of this Theory Include the Following:
This theory is relevant because it shows the integration of the world as a global village which help in making it easy for state to relate with each other in the international scene for the main purpose of achieving their foreign policy.
Second, under current global conditions, and when we are studying a particular system -i.e., financial or trade sphere- it is not as important as previously thought to use the nation-state category as a unit of analysis, since global communications and international ties are making this category less useful.
Third, with more standardization in technological advances, more and more social sectors will be able to connect themselves with other groups around the world, which implies faster and easier communications and economic transactions.
It also deals with analysing the inter relationship between trade and science and technology in the international scene. Additional employment in the capital goods sector where new machines are being produced, decreases in prices resulting from lower production costs on account of technological innovations,

The Nexus between Trade, Science and Technology

Science and technology or productive technology can be traced to the 18th century industrial revolution in Europe. It was one of the major reasons for the increased trade among Europe and the whole world. (Akpuru, 2002: 45).
Science and technology is important in trade because it accounts for productive efficiency and mass production. It is as a result of technology that industry has supremacy over agriculture.
Technology has contributed greatly to trade. Today it is the nucleus of extractive, manufacturing and distributive industries, including the revolution presently occurring in the agricultural sector.
It also had an impact on global trade in the sense that less advanced countries will like to trade with countries with technologically advanced countries. For instance, 15 years ago Nigeria had no Mammogram or MRI scan but now they have it and this has affected their trade with the global world because both neighbouring and distant countries will like to purchase these services. It can also be viewed at a totally different angle. Due to lack of trained personnel or professionals to operate these machines or render these services, she might decide to import the necessary labour or skill from overseas.
A significance of modern production system is heavily technologically. This can be seen in the case of the multinational corporations in Nigeria. These firms or companies are successful in their host countries more than the local industries present there due to the importation of foreign technology. An example is Julius Berger Construction Company.

The Benefits of the nexus between Trade, Science and Technology

Use of Technology in Business: today business can save money by using technology to perform certain talks. For instance if you operate a manufacturing business instead of bringing so many people to work in certain areas, with the involvement of machines it will therefore lead to rapid production.
The Using of Technology in

Communication: unlike in the past when communication was limited to litter and waiting for those posted services to derive your message. To technology has made the field of communication easy.
The Use of Technology in Education. Also technology has made a very big change in the world today as it has ensured easy access for business men to get acquainted to learning facilities and also to acquire basic knowledge on how to handle a particular business since the requirements necessary for that particular line of business have been acquired or achieved, therefore this serves as one of the major benefits of technology to trade.
Use of Technology in Purchasing: technology has also made the buying and selling of goods and services so flexible with the introduction of e-payment systems like PayPal. Com and square wallet app, users can easily purchase anything online without living to comfort of their home.

The Use of Technology in Agriculture: this has to do with the invention of machines for farmers, they can use a farm machine like farmgraze, to work faster and be more accurate while in the field and off the field. For instance farmgraze machine will help the farmers manage their grass more effectively by suggesting the cheapest feed for their livestock.
The use of technology in

transportation: The invention of cargo train, cargo plane and large ship such as Allure of the sea and cargo ship are used in the transportation of finished goods from one country to another so as to facilitate international trade.
Use of Technology in the Banking: now electronic banking moving money has become so simple. The invention of visa electron has made it simply to move with more money without having any fears of getting robbed on the way. You can buy and anything with a visa electron card, so in this case you do not have to move with cash. Spero, (1980).

The Disadvantages of the Relationship between Trade Science and Technology

Beside the numerous advantages of science and technology in trade, there are also some disadvantages these include the following:

Over Dependency: the disadvantages of science and technology in trade have created dependency in the sense that those countries which are not technologically advanced now depend on the countries which are technologically advanced. As a result of this, the advanced state uses the opportunity to exploit the underdeveloped or developing state.

Colonialism: colonialism can be defined as the total political, economic and socio-cultural domination of a stronger state over a weaker state. As a result of the discovery and the advancement of in science and technology brought about the overproduction and under consumption of goods and service which then result for the advanced state to search for market where they can sell their goods and service which then lead to colonialism of third world states.
The Production of Substandard Product: Again, another disadvantage of science and technology in trade is that it aids in the production of substandard product. Also through advanced medium of communication this substandard goods are introduced into 3rd world countries.

Employment: science and technology is often accompanied by industrialization. Industrialization entails the use of machines which is aimed at mass productivity. Once this is done, it leads to unemployment because machines now take the position of humans who were willing to work.
Environmental Degradation- Most multinational corporations who are sited in host countries amount for the environmental degradation of such host countries. This might be through oil spillage, air pollution and water pollution. An example is a case of Shell petroleum that has issues of oil spillage in most riverine areas. This is the reason why they have decided to go offshore.
It has also affected the health of individuals. When these Multinational corporations degrade the environment it might affect the health of the individuals living in that location. An example can be seen in the case of gas flaring in Nigeria. The people located in the region where the gas is flared tend to develop respiratory illness and mostly cancer.

Conclusion
Conclusively it is very obvious and apparent that science and technology has had a great impact on trade, but in reaction to the question above this explains that the relationship which exists between trade, science and technology is a double edge sword. So therefore in the course of this work we have been able to explained the nexus between these three subject matters as well as the benefits between them and also the disadvantages of the relationship between trade, science and technology have been analysed. Hence one can say that these three concepts are interrelated and interdependent.

References
Alan L. T. (9 – 11, 1992) Conference on International Business Law, September; Retrieved from http://austlii.edu.au/~alan/scibl.html on 13th June, 2015.
Morris. C. (2008). The Deep Structure of Biology, Templeton Foundations Press, W. Conshohocken PA.
David C. Lindberg (2007). The beginnings of Western science: the European Scientific tradition in philosophical, religious, and institutional context, Second ed. Chicago: Univ. of Chicago Press
Roper, T. (1978) Approaches and Theory in International Relations, London; Longman.
Peter Burnell, Vicky Randall (2008), Politics In Developing World. New York: Oxford University Press.
Peter, O.N. (2002) . Restrictions Economy through Privatization: The Economist 4
Shangquan G. (2002). Economic globalization: trends, risks and risk prevention, New York. Www.
Un.org/esal/policy/devplan/index.html
Akpuru Aja (2002) Selected Themes in International Economic Relations: Understanding trends of Globalization and Regionalization. Enugu: Nigeria.
Spero, Jona E., (1980) The Politics of International Economic Relations, London, George Allen & Unwine, , chapter one (pp.1-12)

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About emmanuelabii

Emmanuel is a profound researcher, who has gone through various academic research processes at Veritas University Abuja, and whose motive is to create a platform where this research works can serve as secondary source to other researchers in search of qualitative data.....
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