It’s a new year, and a time to think differently about America.
If nothing else President elect Donald Trump has caused people like myself to rethink our future. The following are two new trends that pivot off of his comments regarding global trade reduction and global warming.
Global Trade Reduction
Global trade may be slowing down, but global trade in information exchange is expanding, accounting for $2.8 trillion of a a total $5.8 trillion in world trade. Western Europe and America are the world’s leaders in this area. ( Ref. WaPo, Why America Is More Competitive.)
For those who believe Donald Trump will start a trade war, think again, he’s a twitter warrior. He knows the power of digital communication.
An example of how global trade in goods is changing is the the placement of 3D digital printers that American companies are placing all over the world. If you need a spare part, don’t ship it, send the software program over the computer, and your 3D printer will spit it out right there in your office, factory, or home.
Digital trade in the form of software, music files, emails, skype, face time, You Tube, documents, lectures, educational packages, design lay outs, etc. will grow fifty to a hundred times over the next two decades.
Global trade in goods and services may shrink, but global exchange of digital information and data will easily replace what will be lost. (Ibid.)
President elect Trump may think global warming is an exaggeration, but that doesn’t stop the North Arctic Circle (North Pole) from continuing its melt down. Such a fact may provide a new look at how the global economy will adjust to new opportunities.
Hidden opportunities rise out of challenges, right? Well, here’s a case where five nations lay claim to large portions of the Arctic Circle. They are: Russia, Denmark, Canada, Norway, and America. If you look at a map from the very most northern point, you will see these five countries forming a ring of connection at relatively short distances from one another.
As ice melts, new sea lanes open up. The distances for shipping goods and services are dramatically closer, cheaper, and faster. These five countries stand to be the beneficiaries of new and much more efficient ways of shipping goods and services.
In addition to shipping advantages, agriculture will increase in those nations due to warmer temperatures. Canada happens to control fifty percent of the Arctic Circle. As temperatures rise there, Canada will very likely become the world’s largest producer of food in the world. The only problem is that Canada has a very small population. Hence partner nations like America and Mexico will provide much of the manpower and resources to develop the infrastructure of that area. Not only will this be the case for the easy transportation of millions of new workers, but for construction companies, railroads, computer manufactures, telecommunication companies, ship builders, hydroelectric engineers. (Ref. WaPo, Six Maps That Will Help You Rethink The World.)
Welcome to the new map of the new world that creates the new riches.
Whether you consider him friend or foe, Mr. Trump has us thinking harder about how to make lemonade out of lemons. At least that’s the case for me.