Background information
Advances in digital technologies are changing what and how we trade, lowering barriers to internationalisation and fuelling the rise of e-commerce and borderless digital trade, diversifying the content of traded goods and services and enabling new players to engage in international trade.
Digitalisation affords opportunities for our Commonwealth to build new industries, devise new ways to deliver better services, and enhance market access through digital trade. Advanced digital production technologies create new ways to accelerate innovation, boost productivity and raise the value-added content of goods produced in Commonwealth countries. More generally, the rise of the digital economy is creating new economic pathways, livelihoods and job opportunities that support inclusive and sustainable development across the Commonwealth. It also creates new avenues to expand the role of women in trade.
Fintech has emerged as the new ‘disruptive market force’ and is challenging the traditional means of providing financial services. Global Fintech investments have increased from $2.5 billion in 2012 to over $31 billion in 2017. Fintech stands for Financial Technologies and refers to technological innovation in the financial sector, including anything and everything from mobile banking and peer-to-peer payments to distributed ledger technologies and digital currencies. The main challenge is striking the right balance between regulation and promotion of this rising sector.
International business (IB) enterprises face complex interactions with non-business entities such as governments, NGOs and supranational organizations such as the UN, the Commonwealth and specialist regulators. They take actions to influence policy, but their strategies are also affected by public policy choices in various areas. These include emerging areas such as digital trade and fintech. As students of IB, it is increasingly important to consider the policy implications of such emerging areas and, especially in a post-COVID world and recovery, the public-private interface given the high level of government intervention to help economies build back better.
• Write an 800-word written submission focused on the recommendations for Commonwealth Governments in which can provide more evidence and references to support the comments in your presentation. (800 words)
You should respond to the following questions:
a. Critically evaluate the possible challenges and opportunities of the fintech sector in a Commonwealth country of your choice within the context of a changing global trade landscape.
b. What recommendations can be made for Commonwealth Governments to support the fintech sector and encourage collaboration between Commonwealth countries?
