2021-05-20 10:30:00 Thu ET
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Artificial intelligence, 5G, and virtual reality can help transform global trade, finance, and technology. Core trade technological advances and disruptive innovations can allow global trade to become more efficient, inclusive, and equitable. The tripartite interplay of trade, finance, and technology has a long global history and thus spans from transport advances to cross-country supply chains and production networks. Trade optimization occurs between several different multinational corporations and small-to-medium enterprises. In effect, this global trade optimization synchronizes the dual transformation from analogue nodes to digital network platforms. Through this dual transformation, disruptive innovators extract big data for analytic business insights and then apply this data analysis to smart automation, artificial intelligence, 5G, and virtual reality.
Business perceptions show that several technological advances can cause a major substantive impact on global trade. A recent survey by the World Economic Forum delves into how artificial intelligence, 5G, and virtual reality can affect international supply chains, trade networks, and data platforms. In accordance with this survey, fundamental trade tech advances such as digital documents, electronic payment systems, and cloud services tend to be most relevant in the short run, and big data analysis, artificial intelligence, 5G, and virtual reality can cause qualitative changes in the longer run. The major benefits of trade tech advances are productivity gains, scale economies, and network effects. New digital products and services, inclusive institutions, and environmental improvements often enhance global trade networks, fintech network platforms, and other cloud ecosystems. However, the same survey further highlights the potential adverse ripple effects of trade tech advances due to job displacement, oligopolistic competition, and antitrust regulatory scrutiny.
Some fresh trade agreements (such as Data Free Flow with Trust under the Osaka Track and cross-country harmonization OECD Principles on Artificial Intelligence) can help facilitate the wider adoption of trade tech advances. In the meantime, the inexorable cross-border tension between trade and 5G technology risks expanding beyond legitimate security standards to techno-nationalism. The tech mega trends today challenge the conventional wisdom that economic interdependence tends to arise from low-wage labor arbitrage in China, India, Vietnam, and other East Asian countries. In fact, labor cost concerns drive only about 17% of global trade in goods. Meanwhile, global value chains have become more knowledge-intensive (and thus less labor-intensive and capital-intensive) partly due to embeddable 5G technology and automation. Nowadays, knowledge-intensive goods and services account for more than half of all cross-country flows and so continue to grow faster than labor-intensive and capital-intensive flows etc. From data scientists and econometricians to software engineers, high-skill knowledge workers and many other subject matter experts apply artificial intelligence, 5G, or virtual reality to upgrade global trade and finance.
Many trade tech advances enable the global exchange of both goods and services to be more efficient, inclusive, and equitable. High-tech multinational corporations often find that these trade tech advances are fundamental to harnessing the central disruptive innovations of the digital revolution for global tech titans and unicorns to support the public good. The main benefits of trade tech advances manifest in the form of new business models, global value chain reconfigurations, efficiency gains, or both inclusive and sustainable trade outcomes for small-to-medium enterprises. Greater connectivity empowers multilateral trade partners to synchronize their core trade networks, platforms, and ecosystems among different business parties. This synchronization often relies on the broader adoption, diffusion, and proliferation of information communication technology (ICT). ICT analytical tools and applications often help better connect core trade operations and services to customer demands and preferences worldwide. For instance, the joint efforts by microchip makers Intel, TSMC, and Samsung etc can help reduce the long prevalent microchip shortages in America, Britain, Canada, China, Europe, India, and other parts of the world.
Fourth Industrial Revolution trade tech advances filter big data on customer-centric essential needs, tastes, demands, and preferences etc. Such trade tech advances work in bundles to enhance cross-border operations. For instance, it is difficult for human experts to monitor autonomous robots and vehicles without the deployment of artificial intelligence, 5G, or virtual reality. Specifically, many experts expect the diffusion of 5G networks to bring about dramatic changes in almost all aspects of global trade. Supply chains gain a lot from real-time product lines, wireless sensors, and smart robots on roadways, in railcars, at airports, in seaports, at customs, and in warehouses. For the first time, this dual transformation helps decentralize major business processes and operations. As a result, this decentralization promises to promote greater transparency from end to end. Data availability allows all business entities to move from reactive rare event mitigation to proactive event management. These trade tech advances help ensure the seamless integration of data analytics to sharper customer demands and preferences in the global value chains.
Increasingly capable and powerful hardware allows many business processes and operations to flow through mobile devices. Almost 9 million mobile applications are now available worldwide, with 200+ billion downloads across the globe. The most active trade applications include smart freight robots and shipments. These mobile applications help ensure better supply chain visibility and transparency. End users can find out what happens in logistical processes across different economic actors in each global supply chain. In recent years, many trade partners use GPS monitor systems and smart freight devices to connect the dots on the global map. All these trade tech advances help minimize transport mistakes, communication errors, and other irregularities through the value chain. Some new mobile applications reduce and anticipate these technical issues through data analytics, real-time updates, or wireless sensors. PDF checklists, freight snapshots, and pickup signatures provide the proof of concept for these trade tech advances. Global value chain transactions list on real-time collaborative dashboards with or without application programming interfaces (API), electronic data interchanges (EDI), or software development kits (SDK). The cost-effective solutions can help save a great deal of time, money, and energy for numerous trade tech users. In addition to the substantial efficiency gains, the ultimate service quality improvements help better ensure customer satisfaction due to greater global supply chain transparency.
Fundamental trade technological advances such as e-commerce platforms, digital payment systems, cloud services, and digital documents are likely to yield greater short-term benefits. In the longer run, artificial intelligence algorithms, 5G networks, and virtual reality robots and headsets can cause structural changes in global trade and finance. The major efficiency gains tend to arise from trade harmonization and supply chain enhancement, ubiquitous trade tech adoption and proliferation of new digital products and services, environmental protection due to green energy usage and logistical coordination, and the wider inclusion of small-to-medium enterprises in global trade. On the other hand, trade tech adoption and diffusion can reinforce oligopolistic competition among tech titans, knowledge-intensive job concentration, and intense antitrust scrutiny worldwide.
We now assess and evaluate many major mega trends in trade tech advances and applications. In recent years, governments attempt to cleanse global supply chains of critical trade tech advances due to national security and other strategic concerns. These critical trade tech advances include video surveillance, telecommunication, and cross-border freight technology etc. Several core trade tech suppliers such as Intel, TSMC, Samsung, Huawei, Qualcomm, and so forth are subject to blacklists, significant value chain disruptions, and strict government procurement restrictions. Governments further intervene to restrict outbound flows of critical tech advances under export controls, macro economic sanctions, trade secret laws, and personal data privacy regulations etc. U.S. Congress has passed the Export Control Reform Act to mandate an inter-agency review for identifying foundational tech advances that are not currently subject to export restrictions. These trade tech advances can include artificial intelligence algorithms, data analytics, logistical processes, smart machines, quantum cloud services, semiconductors, and 5G wireless high-speed broadband networks etc.
In some cases, governments push to create new opportunities for local technology champions through state subsidies and preferential tax arrangements despite their discriminatory nature. Specifically, China protects its high-tech national champions such as Alibaba, Baidu, ByteDance, SMIC, and Tencent etc, and America depends on its multinational tech titans such as Apple, Amazon, Google, Microsoft, Nvidia, Intel, Facebook, SpaceX, Tesla, and so forth. In the increasingly inclusive world of new trade tech advances, multinational corporations are often stuck in the middle of intense tensions between private market interests and national security grounds. In some other parts of the world, open source code tools and real-time data feeds secure, direct, and monitor essential cross-border trade flows and transport supply systems. A new international non-governmental organization ASEAN Digital Trade Connectivity aims to connect all of the trade facilitation actors into a single platform across all member states in Southeast Asia. This non-profit joint venture builds on the ASEAN Single Window efforts for smoother cross-border trade flows. Moreover, logistic data feeds such as Ocean Protocol and dexFreight empower multinational corporations to monetize operational data for trade transport and aggregation in a secure and cost-effective manner. The core operational data transfer mechanisms help ensure free data flows with trust across many jurisdictions worldwide.
Omni-channel retail carriers leverage e-commerce platforms (such as Amazon and Alibaba), 5G data networks (Apple, Google, Foxconn, Huawei, and Samsung), and cloud services (Alibaba, Amazon, Google, and Microsoft) to sell transport capacity directly to shippers. This core disruptive innovation puts pressure on logistic freight service providers in order to support their value proposition in the digital trade tech ecosystem. Third-party logistic systems outsource supply chain management and service integration through new trade tech advances. As a result, these third-party logistical systems help develop bespoke business models for higher customization and global value chain automation with deep machine-learning algorithms, random forests, support vector machines, and neural networks. Greener, safer, and more inclusive value chain practices can help enhance technical efficiency, data visibility, greater trade transparency in accordance with high social accountability standards. Due to new trade tech advances such as real-time third-party logistic systems and open source data feeds, more efficient supply chain management can help reduce carbon emissions across global distribution processes. For instance, Walmart now commits to doubling the carbon efficiency of its fleet by 2025 by applying new trade tech advances in collaboration with global supply chain partners. As of early-2021, Walmart has dramatically reduced carbon emissions by about 650,000 metric tons of CO2. This landmark carbon reduction helps strategically cut costs by more than $1 billion per year. Overall, such carbon efficiency gains and improvements accord with both the main letter and spirit of trade tech advances for sustainable economic development.
Global trade transactions are now about $15 trillion per year as of early-2021 and will likely approach $25 trillion by 2030. At least 80% of these trade operations rely on cross-border trade finance. Trade finance allows multinational corporations and financial institutions to manage the risks in association with trade transactions that take place in a few cases where the buyer and seller have almost no or low visibility of each other. A recent survey by the Asian Development Bank suggests that more than 50% of trade finance requests from small-to-medium enterprises are not met. This inadvertent outcome can result in a $1.5 trillion capital shortfall in unmet global trade finance demand. This mega trend translates into a substantive reduction in trade flows because about 55% to 65% of multinational corporations that face trade finance rejection cannot complete the trade. To the extent that trade revenues can drive most credit decisions for small-to-medium enterprises, trade tech advances and applications can help address the trade finance capital shortfall for better trade inclusion of both multinational corporations and small-to-medium enterprises.
Trade finance has been around for centuries, and the letter of credit has often been a major source of small-to-medium business trade finance as far back as ancient Greece. The recent adoption and proliferation of trade information communication technology (ICT) supports better automation for international trade partners. Digital documents, online payment gateways, e-invoices help verify digital images of trade finance agreements in a fast and cost-effective manner. Fintech network platforms provide proprietary alpha stock signals and personal finance tools for institutional investors, retail traders, and small-to-medium business owners. These digital data platforms often help democratize trade by allowing small-to-medium enterprises to access international financial markets. Cross-border business-to-consumer (B2C) e-commerce represents 11% to 15% of global trade in goods. This landmark level often grows at twice the rate of domestic e-commerce. Business-to-business (B2B) e-commerce platforms are practically relevant for the core purposes of global trade transparency. These resultant trade tech solutions shine fresh light on tech-specific policy considerations for greater ICT adoption and diffusion.
Artificial intelligence allows business process automation and the key development of new products and services with both efficiency gains and quality improvements. Artificial intelligence can influence almost all aspects of trade in the data economy, especially trade tech services. In particular, information communication technology (ICT) users and adopters outsource service tasks in business process automation. Empirical evidence shows a positive link between ICT usage and global commerce. The central service tasks include many back-office functions, loans, accounts, and medical tests. As these service tasks transform from labor intensity to knowledge intensity, the competitive advantages of Asian low-labor-cost countries for offshore service provision tend to dilute over time. Therefore, the next gradual evolution of artificial intelligence services can most likely drive structural qualitative changes in the new reconfiguration of global value chains. Across the globe, business owners and disruptive innovators often learn to weigh the trade-off between core business process automation and high-tech job displacement through the smart deployment of artificial intelligence codes and algorithms. When push comes to shove, the law of inadvertent consequences counsels caution.
In Europe and India, the British telecom company Vodafone plans to lay off 1,700 service center employees (or more than 7% of the workforce) in the next few years. This service job replacement relies on the new implementation of smart automation solutions such as mechanical robots, chatbots, and some other mobile applications. At the same time, Vodafone creates more than 1,500 new jobs in computer science, big data analysis, and software automation worldwide. Most of the labor-intensive jobs lost tend to concentrate in low-cost countries. By comparison, most of the new knowledge-intensive jobs require higher tech-savvy qualifications and thus exhibit a more even distribution over the world. Both subject matter expertise and domain knowledge tend to focus on tech skill adoption, online security, smart data analysis, and personal privacy protection. Many of these offshore services heavily rely upon artificial intelligence, robotic automation, and automatic software code generation. On balance, Vodafone serves as a good example of how artificial intelligence often causes the next dual transformation of tech-savvy jobs toward greater knowledge intensity and smart machinery.
Artificial intelligence can contribute to better digital trade facilitation. The smart use of modern information communication technology (ICT) often helps streamline the movement of goods across many countries. The World Trade Organization (WTO) estimates that many inefficient customs procedures account for almost 37% of total variance in trade costs. More and more governments exchange digital documents, electronic payments, and e-invoices for international trade. In this unique fashion, artificial intelligence helps these governments and the WTO improve tariff and duty collection with less illegitimate non-compliance. Predictive artificial intelligence can help enhance trade risk management and cargo inspection through X-ray scanners on freight containers. The WTO indicates its good will and intent to further facilitate trade tech ICT adoption, diffusion, and proliferation worldwide.
In recent years, artificial intelligence has fundamentally changed from pure science fiction to real-life practical applications in the trade customs domain. Core cognitive trade tech advances involve artificial intelligence, and these tech advances include computer vision, natural language, virtual reality, robotic trade process automation, and smart machinery. The major artificial intelligence algorithms pertain to random forests, extreme gradient boosters, support vector machines, neural networks, and reinforcement methods. Cognitive applications understand the business context of particular patterns in big data. For instance, multi-layer neural networks often help the data scientist apply a systematic method to detect data patterns, anomalies, or other irregularities. This specific practical application fits well the fast and accurate identification of credit card fraud in international trade. In this positive light, the data scientist can apply most artificial intelligence algorithms to ascertain the legitimacy of cross-border trade transactions for customs controls to concentrate their efforts and resources on the high-risk targets. This focus helps reduce sacrifices in global trade capacity to the detriment of the compliant trade tech operators. The resultant data-driven risk management systems can accelerate the next dual transformation toward the seamless integration of both trade and artificial intelligence. Many trade jurisdictions have taken incremental steps to adapt to the new normal steady state amid Covid-19. The WTO aims to provide a holistic view of trade data analytics for better artificial intelligence and economic development in the post-pandemic era.
The OECD Principles on Artificial Intelligence represent the most high-profile and comprehensive consensus view on artificial intelligence evolution in several major countries. On the basis of the G7 multi-stakeholder partnership guidelines and G20 joint statement on customer-centric and data-driven artificial intelligence principles, the OECD Principles focus on personal privacy protection, data integrity, inclusion, innovation, and economic growth etc. Artificial intelligence serves as a new but still rare feature of modern free trade negotiations and regional regulatory debates. For instance, the recent Australia-Singapore Digital Economy Agreement includes a memorandum on artificial intelligence to promote sharing best-practice regulations for human-centric and ethical smart mobile applications. This bilateral agreement helps provide access to both new open-source and proprietary artificial intelligence algorithms available at key scientific research labs and industry centers. The Chile-New-Zealand-Singapore Digital Economy Partnership Agreement contains similar commitments for the states to work together on artificial intelligence governance in cross-border trade. Overall, these countries apply these trade agreements to build cross-country cooperation and harmonization between the respective new artificial intelligence governance rules and regulations so that these best practices continue to serve as global industry standards for data-driven trade.
Some cross-border trade depends on large-scale deployment of wireless sensors for governments, multinational corporations, and small-to-medium enterprises etc to monitor big data in real time (such as speed, congestion, temperature, humidity, and so forth). Data-driven predictive insights often help inform business decisions. Artificial intelligence algorithms can help avoid global value chain disruptions when business partners analyze trade data to accurately gauge arrival times, congestion levels in ports and cargo yards, and temperature deviations for perishable products and medications. Smart mobile devices track and monitor the real-time geolocation from departure to final destination. In this positive light, artificial intelligence codes and algorithms can often help maintain sufficient inventories just-in-time with better replenishments to the customers.
Several multinational corporations offer artificial intelligence solutions as Software as a Service (SaaS) to promote fast and effective remote collaboration through the global supply chain. Autonomous trade tech advances help reduce labor-intensive work. From drones to robotic operators in warehouses, many trade companies and governments consider upskilling current knowledge workers to manage the mobile applications of new trade tech advances despite massive job displacement. A new PwC survey shows that at least 15% of the global workforce, or 375 million workers, will need to switch jobs due to smart automation and artificial intelligence by 2030. Several other survey estimates suggest a different story: core trade tech advances can create at least 155 million new jobs for computer scientists, software engineers, econometricians, and smart machine learners etc to offset global job displacement (which may arise due to ubiquitous artificial intelligence and automation). A recent SaaS platform example is Dorabot. Dorabot has built the SaaS platform for artificial intelligence container load plans to improve the spatial capacity utilization of freight containers with cost-effective carbon efficiency. The resultant trade tech advances require upskilling the current workforce for better freight optimization in East Asia and many other parts of the world.
5G serves as the new generation of wireless mobile broadband networks with high-speed communication, excellent reliability, and lower latency. With 5G, high-speed data transmission means at least 10 GB per second. Peak download speed is likely to be as high as 20 GB per second. 5G deployment can help boost trade worldwide, especially in online services from e-commerce to e-payment, video-conference, or online education. During the pandemic corona virus crisis, the U.S. experiences a sharp substantial increase in Microsoft Skype and Zoom app usage for high-speed video conference calls. Google, Coursera, and Khan Academy offer online courses from law and medicine to finance and information communication technology (ICT). Moreover, Walmart, Doordash, and Instacart are the top apps for food and grocery delivery. K Health, Amwell, and Teladoc provide the top apps for medical treatment, health care, and fitness. Overall, these top apps rely on 5G deployment to continue to meet the recent surges in the aggregate demand for online services worldwide. As of early-2021, more than 37 countries deploy 5G wireless broadband networks. Although 5G cannot replace 4G overnight, numerous multimodal 5G networks and stations can facilitate a smooth transition. Many economists now expect global 5G ICT adoption and diffusion to reach at least 1 billion users in the next 5 years.
Political tension continues in regard to global 5G deployment, especially between China and America. The status quo can drive market fragmentation among Apple, Foxconn, Huawei, Qualcomm, and Samsung etc for better geopolitical alignment. Global 5G service providers need to rise to the myriad challenges of trade barriers, blacklists, and other export controls. A few oligopolists can often retain competitive advantages in global 5G deployment because 5G high-speed fiber optic networks require rare, valuable, and inimitable resources in business organizations.
At a lot lower latency, global 5G deployment not only improves mobile broadband, but also enhances the user experience in online service provision. From retail trade and entertainment to education and medicine, online services can evolve over time as they leverage the smart use of both 5G networks and virtual reality robots and headsets. 5G networks speed up the remote control of autonomous infrastructure for driverless vehicles, drones, and even medical procedures. Artificial intelligence, 5G, and big data analysis can help unlock a wide range of new online services and opportunities from automatic interpretation and speech recognition to smart freight shipment automation. This gradual transition can help extol the practical relevance of both big data and intellectual property regulations worldwide.
In the 2020s and beyond, a robust global 5G infrastructure can become essential and foundational to both inclusive economic growth and sustainable development. Global 5G networks can potentially democratize cloud services and mobile devices in the wider adoption and diffusion of information communication technology (ICT). Public-private partnerships can become fundamental to 5G ICT global proliferation. In order to benefit substantially from core 5G networks, governments urgently need a transparent strategy for cross-industry capital investments and trade regulations. Global 5G networks serve as a general-purpose high-tech disruptive innovation for broader practical applications of cloud services, artificial intelligence algorithms, or virtual reality robots and headsets.
A recent PwC survey shows that global 5G networks can add almost $4 trillion (or 2%) to GDP economic output worldwide by 2035. This economic output expansion supports about 23 million new jobs in ICT adoption and diffusion across the globe. Global 5G remote operations offer the new opportunity for tech titans and unicorns to improve team interactions with data-driven diagnostic insights. For instance, the Spanish telecom titan Telefonica partners with Samsung and Launchcloud for the new pilot trial of a 5G smart ambulance use case. Smart ambulances can conduct on-the-spot diagnostic communication with doctors to reduce the medical urgency for paramedic physicians to transfer patients to hospitals. This 5G procedure helps stabilize health care through mobile expert consultation before the patient reaches the hospital. Remote 5G transport connectivity further ensures a safe and efficient driverless future for vehicles in global trade, finance, and health care.
Through global 5G networks, fast mobile broadband offers a first-of-a-kind capacity to connect mobile devices worldwide. 5G helps connect millions of mobile devices per site (rather than hundreds of humans). A new Huawei report projects that each adult on earth owns 5 smart mobile devices on average by 2030. As of early-2021, there are already 8 billion smart phones. By 2030, there can be more than 20 billion computers, tablets, virtual reality headsets, smart watches, and many other mobile devices. As global 5G networks render this mass adoption affordable to each adult on earth, many telecom operators face the new business concerns and challenges around large-scale energy use, environmental degradation, data security, personal privacy protection, and so on. For example, China Mobile and Huawei have jointly applied the 5G digital indoor system to launch the first-class 5G trade mall L+ Mall in Shanghai. This fresh trade mall serves as a testbed for trailing diverse shopping experiences for retail customers.
Global 5G networks help monitor the smart automation of core asset management processes. This function frees up time for high-skill knowledge workers to focus on asset utilization, data integrity, and subsequent econometric analysis. 5G can help overcome many trade barriers by reducing long-term operational costs with higher network density, better connectivity, wider coverage, and substantially lower power consumption. With fast and large-scale 5G networks, it can become economically viable for high-skill knowledge workers to curate both smart machines and artificial intelligence algorithms etc across a broader gamut of assets in real-time with better predictive maintenance and less downtime. As a good example of the 5G capability, Hewlett Packard Enterprise (HPE) shows how several 5G networks self-heal when these networks suffer systemic degradation due to on-site latency or excess traffic. As part of a key test done in Paris, the 5G networks introduce additional data traffic and latency, and as a result the kit robot experiences a substantial deterioration in core machine performance. In this case, however, the 5G networks recognize this deterioration in core machine performance and then self-correct the kit robot to its normal steady state by creating some new network slices. Such new network slices can help accommodate the sudden spikes in data traffic and on-site latency. These 5G networks play a critical role in promoting consistent core machine performance over time.
The pandemic corona virus crisis has brought the windfall benefit of key reductions in carbon emissions worldwide due to less transportation and energy consumption. As countries and business organizations work toward net-zero carbon emissions, 5G at scale can provide new business opportunities for tech titans and unicorns to sustain this one-time benefit from the post-pandemic period. For instance, a Swiss agricultural research center Agroscope uses real-time smart sensors to measure soil moisture, crop growth, weather data, and animal geolocation etc. These smart sensors allow several Swiss farmers to reduce the amount of nitrogen fertilizer use by 10% without any loss in crop yield. In many business cases worldwide, the use of 5G smart sensors (and other mobile devices) can allow farmers to produce more crop with substantially less consumption of scarce natural resources such as clean water, nutrition, and sanitation etc.
5G high-speed networks boost the future generation of autonomous robots, drones, and vehicles and thus allow for more complex capabilities for smart automation in the workplace, office, and factory etc. As robots and drones are already ubiquitous in the manufacturing sector, 5G networks empower manufacturers to harness data analytics and cloud services to reconfigure cross-border trade transactions. These multinational corporations and small-to-medium enterprises strive to meet frequent changes in customer needs, tastes, demands, and preferences. With a wide range of mobile applications, the global 5G market for autonomous vehicles, drones, and robots are likely to reach $75 billion by 2030 (with about 10% annual growth in the next decade). In the Netherlands, for instance, KPN collaborates with Wageningen University to combine 5G high-speed networks and robots with artificial intelligence and cloud power in order to accommodate large-scale outdoor crop management. This project applies an autonomous robot Robotti to spray weeds and unproductive plants in sugar beet plantations. Robotti achieves 95% accurate identification with more than 20 times the productivity of manual labor. This business case illustrates the efficiency gains from the practical use of 5G wireless high-speed networks in agribusiness sites, transport hubs, and physical industries etc.
Allocating scarce and critical resources for 5G high-speed networks helps reduce capital roll-out costs. This 5G network deployment benefits a greater proportion of high-skill knowledge workers. Governments can work with the telecom bellwethers to defray 5G network roll-out costs. Many countries are likely to experience broader 5G trade tech benefits across the global economy sooner. In America, the Federal Communications Commission (FCC) approves a rural 5G connectivity scheme in recent years. This FCC 5G scheme helps finance private mobile telecom operators. In effect, the current scheme allows the U.S. telecom titans such as AT&T, Verizon, Sprint, and T-Mobile to deploy 5G networks in several rural regions with less dense population. In these rural areas, U.S. citizens and companies can benefit from 5G sooner.
With 5G, the higher network capacity and ultra-reliable or low-latency connectivity can enable the real-time exchange of both video and virtual reality content through high-speed broadband networks. The richer multimedia experiences can close the gap between both live and virtual reality contexts. In practice, virtual reality robots and headsets further enrich user experiences, multi-player games, museum visits, and life-like simulations via 5G high-speed networks. Both 5G networks and virtual reality headsets and robots provide fresh business opportunities and new revenue streams in health care, education, and tourism. Some trade tech specialists expect virtual reality to deliver a $2 trillion boost to the global economy by 2035.
For instance, BT, Glasgow City Council, University of Glasgow, and Scotland 5G Centre deliver a joint virtual reality demo of the practical use of 5G networks in high education. This real-time virtual reality mobile application shows how higher speed and reliability of 5G networks can enable immersive content and real-time reaction to many onsite campuses over the world. The creative combination of both virtual reality headsets and 5G high-speed networks helps enrich online content curation for high education.
In sum, 5G networks help facilitate structural transformation in many key industries such as global trade, finance, health care, education, transport, tourism, and so on as we now emerge from the pandemic corona virus crisis. 5G high-speed networks can democratize affordable access to both cloud services and virtual reality robots for many governments to close the digital dichotomy across regions. Public-private partnerships are vital and essential as governments strive to sustain the economic recovery from the pandemic period. Many countries now need a clear and holistic strategy for cross-border capital investments and inclusive trade institutions. Over the next decades, 5G high-speed networks evolve to scale up ubiquitous adoption diffusion of information communication technology (ICT). ICT trade tech advances can help promote higher economic growth, employment, and capital accumulation over time.
Virtual reality refers to the user experience of computer simulation that can be quite similar to the real world. Many virtual reality applications span entertainment (video games), education (e.g. medical procedures and military tests), and business trade (e.g. Skype and Zoom video conference calls). The immersive virtual reality trade experiences complement panoramic views. Most virtual reality systems use either multimedia headsets or robots to generate realistic images, sounds, and other user sensations with his or her physical presence in a virtual environment. The end user who uses virtual reality headsets and robots can interact with many virtual features and items of artificial computer simulation. Virtual reality often includes both video and audio feedback, but may allow other types of sensory force feedback through haptic technology.
With virtual reality headsets and robots, the display of information is no longer set by the size of a physical screen on a desktop or a mobile device such as the iPhone, but fills the entire field of vision. Virtual reality creates a fresh, immersive, and even intuitive way for humans to interact with artificial computer simulation. As Goldman Sachs suggests, the new niche market for virtual reality headsets and robots can be worth $95 billion by 2025. Moreover, a recent report by PwC predicts that virtual reality can add about $1.5 trillion to the world economy by 2030. Virtual reality can spur productivity gains in global trade, finance, health care, product development, real estate design, retail commerce, education, and entertainment.
Virtual reality developments arise from new hardware in the smartphone industry and new software in the video-game industry. With their color screens and motion sensors, modern smartphones contain almost all mobile features and functions for virtual reality. In practice, a smartphone that one slots into a cardboard viewer with a couple of lenses can serve as a rudimentary virtual reality headset. Virtual reality systems use high-end motion sensors and other tech advances, and can use many of the same components of both the iPhones and iPads. Smartphones can further deliver a hand-held form of virtual reality to overlay artificial features and items on images from the phone camera. For example, the well-known game Pokémon Go involves catching virtual monsters hidden around the real world. Other smartphone virtual reality apps identify cars with labels and descriptions, or can provide walking directions by superimposing floating arrows on a street view. Several virtual reality filters can transform outward appearance with make-up, light, and other cosmetic changes. These basic virtual reality app features are quite popular on social media outlets such as Facebook, Instagram, Pinterest, Reddit, Snapchat, and Twitter.
On the software front, virtual reality benefits from the new structural transformation of how most software engineers build and design video games. Such video games no longer involve simple 2-dimensional grids, but complex simulations of the real world. Hundreds of lines of code snippets can turn multi-player button presses into cinematic imagery on screen. The virtual reality game engine manages the logical rules of the virtual world. The game engine further renders computer imagery take into account shadows, textures, and different objects in the scene. For multi-player games, the game engine handles real-time interactions with other players around the world. Applying the game engine to handle the knowledge-intensive job of core virtual reality simulation allows several video game developers Activision Blizzard, Electronic Arts, Zynga, and so on to focus on the creative elements of game design such as stories, characters, aesthetic assets or symbols, and interactive 3D virtual reality experiences.
The international furniture retailer IKEA applies virtual reality technology to design interior items and home accessories. IKEA uses 3D computer models to develop virtual reality solutions for photorealistic images of kitchens, bedrooms, and other interior conditions. This virtual reality effort saves a lot of time, money, and energy for IKEA to focus on local tastes and preferences for interior design. Software lets designers mimic the way fresh lights reflect and scatter across surfaces. As a result, the virtual scenes become indistinguishable for the real world. Designers fine-tune and fix the vivid images shot in a virtual world whenever some piece of furniture is subject to redesign or even withdrawal from sale. These 3D visual products serve as a convenient way for many designers to produce flawless photorealistic images and video advertisements, websites, in-store catalogs, and real estate properties. The same virtual reality proof of concept applies to cars, machines, smartphones, airports, residential houses, and home renovations etc.
The autonomous car startup Oxbotica (built by engineers from Oxford University) tests its artificial intelligence algorithms in a virtual environment. In the simulation, the software agents perform simple tasks such as driving from one place to another, stopping the autonomous car in front of pedestrians, and obeying traffic lights. The Oxbotica virtual reality games hence help train the artificially intelligent software to understand what the autonomous car can perform in several difficult scenarios and even worst-case scenarios. Several tech titans such as Apple, Amazon, Microsoft, and Tesla delve into this virtual reality proof of concept for real-world applications such as autonomous cars, drones, robots, and other smart mobile devices.
In recent years, Google DeepMind earns the highest accolade in modern artificial intelligence with the global champion AlphaGo on the ancient board game. A new partnership between DeepMind and Unity builds and develops a primary research platform for virtual reality algorithms to solve complex human tasks. The resultant virtual world can set up the cognitive challenges that artificial intelligence designers need to improve their deep machine-learning algorithms, reinforcement methods, and industrial robots for computer vision and natural language. In some Canadian hospitals and universities, each surgeon can use MRI scans from his or her patient to rehearse removing brain tumors before the surgeon enters with the knife in real life. In virtual reality, the surgeon gets a 3D view of the brain tumor on screens and then practices cuts and movements by manipulating instruments on a robotic arm, the latter of which responds with haptic feedback. A major advantage of this virtual reality system is that each doctor can apply the same technology to perform remote surgery. Virtual reality simulations can therefore lead to substantial improvements in education and health care.
Artificial intelligence, 5G, and virtual reality can help transform global trade, finance, and technology. Core trade technological advances and disruptive innovations can allow global trade to become more efficient, inclusive, and equitable. The tripartite interplay of trade, finance, and technology has a long global history and thus spans from transport advances to cross-country supply chains and production networks. Trade optimization occurs between several different multinational corporations and small-to-medium enterprises. In effect, this global trade optimization synchronizes the dual transformation from analogue nodes to digital network platforms. Through this dual transformation, disruptive innovators extract big data for analytic business insights and then apply this data analysis to smart automation, artificial intelligence, 5G, and virtual reality.
Business perceptions show that several technological advances can cause a major substantive impact on global trade. A recent survey by the World Economic Forum delves into how artificial intelligence, 5G, and virtual reality can affect international supply chains, trade networks, and data platforms. In accordance with this survey, fundamental trade tech advances such as digital documents, electronic payment systems, and cloud services tend to be most relevant in the short run, and big data analysis, artificial intelligence, 5G, and virtual reality can cause qualitative changes in the longer run. The major benefits of trade tech advances are productivity gains, scale economies, and network effects. New digital products and services, inclusive institutions, and environmental improvements often enhance global trade networks, fintech network platforms, and other cloud ecosystems. However, the same survey further highlights the potential adverse ripple effects of trade tech advances due to job displacement, oligopolistic competition, and antitrust regulatory scrutiny.
Some fresh trade agreements (such as Data Free Flow with Trust under the Osaka Track and cross-country harmonization OECD Principles on Artificial Intelligence) can help facilitate the wider adoption of trade tech advances. In the meantime, the inexorable cross-border tension between trade and 5G technology risks expanding beyond legitimate security standards to techno-nationalism. The tech mega trends today challenge the conventional wisdom that economic interdependence tends to arise from low-wage labor arbitrage in China, India, Vietnam, and other East Asian countries. In fact, labor cost concerns drive only about 17% of global trade in goods. Meanwhile, global value chains have become more knowledge-intensive (and thus less labor-intensive and capital-intensive) partly due to embeddable 5G technology and automation. Nowadays, knowledge-intensive goods and services account for more than half of all cross-country flows and so continue to grow faster than labor-intensive and capital-intensive flows etc. From data scientists and econometricians to software engineers, high-skill knowledge workers and many other subject matter experts apply artificial intelligence, 5G, or virtual reality to upgrade global trade and finance.
As of mid-2021, we list our proprietary dynamic conditional alphas for the U.S. top tech titans Facebook, Apple, Microsoft, Google, and Amazon (FAMGA). Our core proprietary alpha stock signals enable both institutional investors and retail traders to better balance their key stock portfolios. This delicate balance helps gauge each alpha, or the supernormal excess stock return to the smart beta stock investment portfolio strategy. This proprietary strategy minimizes beta exposure to size, value, momentum, asset growth, cash operating profitability, and the market risk premium. Our unique proprietary algorithmic system for asset return prediction relies on U.S. trademark and patent protection and enforcement.
Our unique algorithmic system for asset return prediction includes 6 fundamental factors such as size, value, momentum, asset growth, profitability, and market risk exposure.
Our proprietary alpha stock investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement our proprietary alpha investment model for U.S. stock signals. A comprehensive model description is available on our AYA fintech network platform. Our U.S. Patent and Trademark Office (USPTO) patent publication is available on the World Intellectual Property Office (WIPO) official website.
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Brass Ring International Density Enterprise (BRIDE) ©
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