AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
THE SYNERGIES OF USA FOREIGN TRADE POLICY AGENDA CHALLENGES WITHIN THE
INDUSTRY 4.0
a
MARCEL KORDOŠ
Alexander Dub
ček University in Trenčín, Študentská 2, 911 50
Tren
čín, Slovak Republic
email:
a
marcel.kordos@tnuni.sk
This paper was supported by the Slovak Ministry of Education’s Scientific grant
agency VEGA: “The impact of Industry 4.0 on jobs structure changes”. Project
registration number: [Reg. No.: 1/0430/18].
Abstract: The forthcoming Industry 4.0 Industrial Revolution, also called a digital
revolution, is characterized by a blending of technologies that erase the boundaries
between physical, digital and biological spheres. There are gains from international
trade. Importing and exporting of goods is big business in today's global economy thus
international trade is supposed to be beneficial for a particular economy even for the
USA. Paper deals with issues such as the U.S. foreign trade characteristics and the
impact of Industry 4.0 on the US trade and economy. This study is analyzing the US
trade policy agenda and discussing the impact of Industry 4.0 on the U.S. foreign trade
and economy and its current status in international economic relations. By
implementing the Industry 4.0 approaches into the U.S. foreign trade agenda, the
economy of United States can keep the leading role in world economy not only today
but also in the future.
Keywords: competitiveness enhancement, export promotion strategy, international
economics, new jobs creation, automatics and robotics.
1 Introduction
International trade means the exchange of goods or services
along international borders. This type of trade allows for a
greater competition and more competitive pricing in the market.
Probably the most important single insight in all of international
economics is that there are gains from trade - that is, when
countries sell goods and services to each other, this exchange is
almost always to their mutual benefit. Importing and exporting
of goods is a big business in today's global economy thus
international trade is supposed to be beneficial for a particular
economy even for the USA.
The versatile use of global capital is the proven success source of
the US global economic model within the 21st Century, based on
qualitative aspects, manifested primarily in global efficiency,
being reflected in the US economy in terms of scientific and
technological global development engagement, the strategy of
science, inventions, discoveries and technical-economic
improvements, the revolutionary progression of information
technology, space research, armaments industry, universities,
education and practically all fields of human activities. These are
the starting points for the forthcoming Industry 4.0 Industrial
Revolution, also called a digital revolution, characterized by a
blending of technologies that erase the boundaries between
physical, digital and biological spheres.
The question is arising if Americans shouldn’t buy American
goods whenever possible, to help create jobs in the United
States. Paper deals with issues such as the U.S. international
trade characteristics in terms of territorial and commodity
structure, the U.S. export trade promotion strategy, the impact of
Industry 4.0 on the US trade and economy international trade
development as well as President’s Trump strategy regarding the
U.S. international trade strategy.
This study is analyzing the US trade policy agenda and
discussing the impact of Industry 4.0 on the U.S. foreign trade
and economy and its current status in international economic
relations. Basic data will be drawn from generally accepted
institutions, evaluating the U.S. economy performance. To
accomplish this goal, methods such as analysis, comparison,
synthesis and logical deduction are to be used; facts from
scientific and professional publications, periodical and non-
periodical press.
International trade of the United States is one of the world's most
significant economic markets. The country is among the top
three global importers and exporters. USA has trade relations
with many other countries. Through efficiency, competition, and
relationships the international trade can increase economic
growth and allow for all countries to benefit from it.
2 Theoretical Background and Literature overview
The world of Industry 4.0 (also called Fourth Industrial
Revolution) is based on the fact that everything goes to the so-
called networking, digitization. According to Zak (2012)
production is interconnected by intelligent logistics of goods and
associated with marketing and intelligent services with a strong
focus on needs, individual and specific capabilities of a
customer. Tight linking of products, devices, people enhances
the efficiency of production machines and equipment, and
reduces costs and saves resources (Varadzin, 2016). Intelligent
tracking, highly automated robotics, intelligent machines,
technology will become a complement to human work. New
business models and new collaboration across countries and
continents are emerging. The Fourth Industrial Revolution has
the potential to increase the world income levels and improve the
quality of life of population around the world (Mura et al.,
2017). With Industry 4.0, the possibilities are enhanced by
emerging technical discoveries in areas such as artificial
intelligence, robotics, the Internet of Things, autonomous
vehicles, 3-D printing, nanotechnology, biotechnology, materials
science, energy storage and quantum computing,
computerization of manufacturing and logistics within the
machine - machine communication.
According to Simionescu et al. (2019) Industry 4.0, the
phenomenon of today, is the interconnection of the Internet of
things, services and people, and the associated immense volume
of data generated, whether the machine - machine, man -
machine or man - man is already communicating. Industry 4.0 is
not just a mere digitization of industrial production, it is a
comprehensive system of changes gathered to a range of human
activities, especially in the field of artificial intelligence, not only
in industrial production. The Internet of Things (IoT) concept is
being developed, enabling everyday items to be included within
the communication network. There are new advanced steps in
robotics, and even some autonomous vehicles are already being
put into production by some companies (only new legislation is
awaiting) along with 3D printers or augmented reality
technologies becoming more and more creatively enforced in
production.
Cihelková (2016) argues that international trade means the ex-
change of goods or services along international borders. This
type of trade allows for a greater competition and more
competitive pricing in the market. Muller (2006) states that the
competition results in more affordable products for the
consumer. Krajnakova et al. (2015) argue that the exchange of
goods also affects the economy of the world as dictated by
supply and demand, making goods and services obtainable
which may not otherwise be available to consumers globally.
According to Tupa et al. (2019) trade policy defines standards,
goals, rules and regulations that pertain to trade relations
between countries. These policies are specific to each country
and are formulated by its public officials. Their aim is to boost
the nation’s international trade. Gärtner et al. (2017) and Deese
(2014) state that a country’s trade policy includes taxes imposed
on import and export, inspection regulations, and tariffs and
quotas.
Lipková et al. (2017) states that characteristics of international
trade can be highlighted as follows. The first one is the
Separation of Buyers and Producers. In inland trade producers
and buyers are from the same country but in foreign trade they
belong to different countries. The second one is Foreign
Currency. Foreign trade involves payments in foreign currency.
Different foreign currencies are involved while trading with
other countries (Helisek, 2016; Helisek, 2015). Very important
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