How are global trade and logistics connected?

1) Logistics facilitates trade, or simply, the movement of goods from one point to the

other; which is what trade is. The quality of logistics helps bring down its cost,

thereby offering trading companies greater international market access. This will also

have a trickle-down effect, resulting in a reduction of poverty and overall welfare

gains.

2) Logistics plays a crucial role in getting products from producers and making them

available to consumers, which is the core objective of businesses across the world.

An efficient logistical network is therefore essential for smooth conduct of

businesses.

3) Ignoring logistical improvements will mean inadequate infrastructure, operational

inefficiency, and processes stuck in red-tape, thereby causing inordinate delays.

4) An efficient, timely logistical network will further enhance the competitiveness of

local markets of various countries as they have got to compete with best-in-class

products coming in from different parts of the world.

5) Continual improvements in logistics are crucial in facilitating the transport of

products and commodities hitherto considered to be not movable from one point to

another. For example, the development of refrigerated vessels made it possible for

perishable products to be traded.

6) Improvements in logistical networks will help a country shore up its export position

by way of better infrastructure and backend support, thereby positively impacting its

balance of trade and easing the pressure on its foreign exchange reserves. This in

turn relates to our initial point of better logistics opening up more international

markets.

Submitted by Group 10

Brajesh M 14A

Nikhil Bharadwaj 27A

Priyanka Keshavdas 32A

Roshan Tated 38A

Satyaki Mascharak 45A

Venkatraman Sathyamurthy 53A