In Conversation with Merle Hinrich: The Shifting Sands of the Global Trade Market
The COVID pandemic has turned the global trade market on its head. There have been supply-chain shortages and massive price fluctuations. In light of this, the Association of Foreign Press Correspondents’ Momoe Ban recently spoke with Merle Hinrich about the future of sustainable trade. Hinrich is the founder and chairman of the Hinrich Foundation, which promotes the development of mutually beneficial and sustainable global trade. Over the course of the 30-minute interview, the AFPC’s Ban probes Hinrich on topics ranging from the secret to successful business to the future of global trade. There are several key takeaways:
Global trade’s importance will only grow from here.
Recent decades have seen an exponential surge in the exchange of goods and ideas around the world. Hinrich notes that globalization is currently “off the charts.” He adds to these observations that this is fully understandable: it is the natural tendency of humankind to trade. From the dawn of civilization, people have been trading. Whether it be sharpened sticks, bricks of clay, or foodstuffs, the human race has survived through the mutual cooperation that comes from trading goods and ideas. As the world becomes more and more connected, trade will become even more important and bring with it economic development. Hinrich suggests the example of Taiwan; when he first arrived in the country for a job, there were oxen roaming the streets while people peddled their goods. Now, Taiwan has become the world’s most important chip manufacturing center. He goes on to describe how e-commerce now allows consumers to purchase goods and services from all around the world at any time, meaning that as demand for goods increases, the importance of global trade is sure to increase as well.
Global trade can help mitigate international conflicts.
Hinrich recognizes that global trade is hugely dependent on cooperation. And the world is not a place that always sees cooperation. Wars, historical animosity, and cultural differences have all impeded successful international relations. However, a country’s development is reliant upon peace. This is a universal fact, whether it is explicitly stated, or internalized. Hinrich notes that there will always be conflicts. Such is a fact of life. But trade can help postpone or reduce the risk of war, as international trade requires some degree of peaceful relations towards a shared goal. Regarding wars, Hinrich makes it very clear that “There are no winners in a conflict of that kind. There are absolutely no winners.”
Global trade has changed immensely in the last few years, and it is hard to predict how it will change.
Hinrich returns to his point that humans have always traded and will continue to trade. This trade has taken many shapes and forms. He believes that it is important to note that global trade does not always bring positive outcomes. However, he thinks that the positive elements far outweigh the negative side of global trade, and he is optimistic that as the years go on, some of the negative sides might go away. Global trade is highly unpredictable, and it is incredibly hard to imagine where it will go in the future. What we can do is work towards our goals in the present, and tackle problems as they arise. He ends the segment on a cheery note, with his belief that the key to business success is to enjoy what you do. Money does not create engagement; passion does. And this leads to success, whether it be in the field of trade, journalism, or scientific research.
About Merle A. Hinrich
Merle A. Hinrich
Merle A. Hinrich has dedicated his 60-year career to promoting global trade, as the Founder and Executive Chairman of Global Sources, and as the Chairman of the Hinrich Foundation. His work is driven by the belief that sustainable and mutually beneficial global trade can bring stability in international relations and growth.
In 1965, Mr. Hinrich obtained a Graduate degree in International Trade at Thunderbird School of Global Management. In 1996, the University of Nebraska awarded Mr. Hinrich an honorary degree of Doctor of Humane Letters. In 2010, the Thunderbird School of Global Management awarded him an honorary degree of Doctor of International Law.
In 2015, Hong Kong Baptist University awarded him an Honorary University Fellowship. In 2018, he received the Beta Gamma Sigma Entrepreneurial Achievement Award.
