Importance of communications in the global economy

The phenomenon of globalisation has been going on for a long time now. International trade has grown so much due to the reduction of many barriers to trade that existed in the past. Economies are opening up to the international markets. As the trade between countries increase, communication is becoming more and more important.

  1. Communication brings buyers and sellers together. The buyers and sellers maybe a long distance from one another. The advancements in communication technology means the cost of such communications have reduced so much that it costs close to nothing these days. Communication has become a reason for the fueled growth in international trade.
  2. Communication enables the documents of trade such as contracts, bills and invoices to be speedily written and transmitted.
  3. Communication makes it possible for people to exchange ideas and to obtain more up-to-date information. Today’s technologies allow information to be obtained very quickly and for handling of great volumes of information.
  4. A business can locate the places where the required supplies for the business is available. An order can be placed easily through communication today. Physical presence is no longer required.
  5. Communication allows businesses to make contact with banks and other lenders to discuss financial matters.
  6. Communication enables the development of international trading organisations such as stock exchanges, commodity markets and foreign exchange markets. Platforms have been established for online trading. The online trading of currencies have grown exponentially.
  7. Communication enlarges the scope of the markets for products and services since worldwide markets can be contacted.
  8. Good communication enhances the productivity of the staff. Employees can work while travelling using mobile phones and laptops. They can work more efficiently as many repetitive tasks are removed. Usefulness of mobile phones has much increased due to the availability of smart phones today.
  9. Good communication enhances the public image of a company. If a company communicates well with the public by informing of its new products and changes to the existing products and as well as promoting their products well, the image of the company as a whole improves.
  10. Communication has provided new business opportunities in the publishing and media industry.
  11. Communication provides savings in time and money. Teleconferencing and video conferencing enable people to meet together without having to travel to meet in one physical location.