The Impact Of Logistics Innovations On The International Business

1509 Words Nov 6th, 2016 7 Pages
Introduction
Nowadays, logistics are constantly developing for meeting the growing requirements of international business. The innovations in logistics are crucial, which can not only stimulate the emergence of international business around the world, but also further promote its efficiency and scale.
This essay will focus on the innovations in modern logistics, taking 3PL as an example to discuss the impacts of logistics innovations on the international business. It will firstly make a brief introduction of 3PL, then followed by the analysis of how 3PL promote E-commerce, one typical model of the modern international business. Theoretical Background
International business refers to the exchange of goods and services among individuals and businesses in multiple countries and areas which origins even in the 14th century. Logistics comprises the activities of transporting goods and services between these countries and areas. The term ‘logistics’ became widely used after 1985, which was derived from the logistics organizations of US army in WWII. Their success of delivering a steady stream of strategic supplies around the world during the wartime was later studied by many companies and then widely introduced into business activities.
Based on the Comparative Advantage Theory (David Ricardo) and Division of Labour Theory (Adam Smith), firms in different countries and areas are willing to utilize comparative advantages to produce goods and services for exchanging some goods…
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