Services replacing goods in world trade.

By Jim Pettinger, President of UCanTrade, Inc.

A recent article in Fortune magazine references a new study by McKinsey Global Institute that finds trade in goods falling while trade in services is increasing. Developing countries are improving supply chains and producing more of their own goods. Two key implications: (1) Foreign trade is no longer being driven by the search for low wages, and (2) Knowledge-based trade is soaring. Investment in intangible assets—R&D, strong brands, intellectual property—has doubled as a share of trade.

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

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