How does the advancement of technology has affected international trade?

Comparative advantage was for many years the standard of international trade which it was originated by David Ricardo, a British Economist. However, the rapid pace of innovation and newer technologies entering the market in rapid flows at the time, have diminished the concept of comparative advantage to stand still. American economist Paul Krugman introduced a new concept for which he was awarded the Nobel Prize in his “The role of increasing returns to scale and network effects” theory. The process of globalization includes maximizing returns by arranging transnational mergers and share production agreements that bring together new partners with mutual interests and strengths into a more competitive global economy. These processes permit the connection of technology and innovation more efficiently with the objective of creating higher standards of living for all involved. Notwithstanding, globalization has benefited more the emerging economies as they catch up with the rest of the world while aging economic concepts and technologies are slower to adopt a rapidly changing world. The negative effect in the developed economies is the generation of worker displacement and unemployment by the older methods of production. The slow motion for implementing new technologies in the developed world is provoking nationalistic concerns making it a difficult transition for these affected industries and governments that must now deal with the social changes and pressures that the new economies bring about. These trends translate into a changing nature for international competition and weights heavily on new technologies in the exercise of international trade. In the meantime, economic and social concerns arise as a result of these rapidly moving waves of change and the cultures are slow to adapt creating new frictions between and within societies.