As the name suggests, when trading with people living in distant lands is involved, Trust becomes a very crucial factor, and if not conducted in a manner, It leads to disruption of overall international trade scenario, making a negative contribution to the globalization. A lot of risk runs through the veins of an exporter when they ship their goods in volume to a distant land despite payments & consignment risks get secured through banking and custom channels. Non-acceptance, quality errors, manipulation due to market volatility, etc. hurt the minds of the traders.
Even though there are established channels & intermediaries through which these deals are done and shipped, but these middlemen too have a limited responsibility towards either end as their gains are just limited to their commission, which becomes quite less palpable for them to accumulate those risk into their accounts.
Irrespective of all the organized financial, shipping, logistical, and communication activities. Trust is still a very crucial factor in the global trade scenario, whether trusting a company, person, or maybe a specific country. It will be unethical from my end, to name a few countries that do have a bad name when it comes to trust in the global trade. That is why there is a reason there are many insurance institutions that ensures payments for an exporter for a country, and their premium amounts also vary from country to country. They have earmarked and assigned certain grades to different countries while ensuring the payments of consignments directed towards these countries.
Although, It has become more comfortable in the 21st century to gauge any supplier and buyer through various channels of diligence and credit rating agencies. But in hindsight, cases of fraudulent and unacceptance in deliveries have increased to a greater extent.
Therefore, this is the very reason we have built a system through which we diligently secure a trade contract through a refundable deposit as an escrow so that interests of both ends are well preserved and risks well secured up to a certain manageable and practical extent. I do know it is tough to adapt this system initially, but we have a strong feeling that we have to deploy a system through which globalization can reach its heights where geography would not matter when it will come to the exchange of goods and values.
Technology can be a great solution to compensate for the missing values, ethics, and principles in modern times, especially in International Trade.