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The Role of Financial Innovation in How Multinational Corporations Promote International Trade

Author(s)

Yifan Meng

Affiliation(s)

School of Social and Political Sciences, University of Glasgow, Glasgow, Scotland, UK

Abstract

To overcome trade barriers, enhance capital mobility, and ensure the positive development of international trade for multinational corporations, a multiple case study approach was employed. Through in-depth analysis of Maersk, Siemens, and Alibaba, financial technologies such as blockchain, artificial intelligence, and digital payment systems were systematically examined for their strategic application along with associated risks and challenges. It was found that the strategic deployment of financial innovation significantly reduced transaction costs, strengthened risk management capabilities, and fostered ecosystem-based competitive advantages. Simultaneously, emerging systemic risks including algorithmic opacity, regulatory asymmetry, and ecosystem monopolization were identified. In response, a series of recommendations were proposed, emphasizing the need to strengthen ethical governance of fintech, promote international regulatory coordination, and establish cybersecurity cooperation mechanisms. In conclusion, as a double-edged sword, while financial innovation empowers multinational corporations to push efficiency boundaries and reshape global trade patterns, it also introduces new challenges such as power concentration and governance fragmentation, marking the official entry of global trade governance into a new phase dominated by technological paradigms.

Keywords

Financial Innovation; Multinational Companies (MNCs); International Trade; Risk Management; Competitive Advantage

References

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