Cybersecurity action of U.S government and impact on international trade
Internet expansion has enhanced global trade, and e-commerce has become one of the innovative methods of conducting business. Communication and connectivity have expanded as well. Besides that, cloud computing is enhancing the connectivity of businesses. However, global connectivity poses risks associated with cyberattacks (Forbes.com, 2020). The e-commerce sites are the soft target of hackers. Hacking and data theft have posed increasing risks. Consumer’s trust is getting affected, and digital trade is causing damage to millions of dollars. Hence, the U.S government has created strategies to strengthen the cybersecurity of networks and computer systems. The government has become severe about forming alliances and partnerships with international firms to optimize the resources and enhance the capabilities of the cybersecurity policies.
The government has passed the U.S Cybersecurity Information Sharing Act so that information regarding the upcoming threats and vulnerabilities can be shared with business firms. The target firms can adapt to the necessary changes and respond quickly. The action of the U.S government has a positive impact on the e-commerce business. It has promoted awareness and aided the businesses to plan responses sooner. The promotion of information sharing has turned rivals into partners. Nowadays, trade agreements among two nations are formed only when both agree to commit to some common goal. For instance, the agreement of Mexico-U.S-Canada includes a pledge of sharing information so that all the trading partners can respond and address cyberattacks on time.
Impact on trade
The actions of the government regarding strengthening cybersecurity and encouraging information sharing have become an instrumental change. It has established the best cybersecurity practices, and e-commerce ventures regained the loyalty and trust of customers. The process is ongoing, and it is likely to influence domestic as well as international trade and commerce positively. It can become a matter of national security and has been instrumental in dissolving disputes. The domestic industry can be protected, and it has reduced some real cybersecurity-related risks by encouraging alliance among business entities. However, the trade networks are still vulnerable to sudden cyber threats, and the government has the right not to allow individual companies to enter or participate in the agreement (Selby, 2017). The purpose of restricting the participation of certain businesses is to secure the information systems of the domestic companies. The need of the hour is cooperative thinking and approach of trading partners that can secure their businesses.