Improvement in which area can lead to an increase in international trade due to technology?

Improvement in supply chain logistics is critical in increasing international trade because it directly affects how efficiently goods are transported from one location to another. Advances in technology, such as automation, tracking systems, and data analytics, enhance logistical operations, minimising delays and reducing costs. When supply chains are optimized, businesses can respond more swiftly to market demands and expand their reach to international customers without the exorbitant costs or inefficiencies that may have previously hindered them.

Efficient supply chains enable businesses to manage inventory better, forecast needs accurately, and ensure timely delivery. These capabilities make companies more competitive in the international market, allowing them to take advantage of larger consumer bases and diverse markets. Enhanced logistics lead to lower freight costs and improved service levels, making it easier for businesses to engage in trade across borders.

In contrast, while employee wage rates, advertising costs, and market research techniques are also important factors in business operations, they do not have the same direct impact on the trade logistics and the ability to move goods across international markets as supply chain logistics do. This difference underscores why the improvement of supply chain logistics is a pivotal area for fostering growth in international trade through technological advancements.