Two centuries ago, farmers locally produced
food
and sold it to the local
market
.
However
, the industry has gradually undergone a major transformation in recent years due to globalization and urbanization.
This
is the case because people no longer live in places where the
food
grows because globalization has led people to migrate to urban cities. The availability of various
food
items throughout the world has brought about numerous benefits to people around the world.
However
, some experts believe that shops should sell the
food
items which are produced locally and avoid selling the imported
food
items. I personally believe that sales of local
food
items should be preferred over the sales of
food
items from other countries.
The primary reason for avoiding the sales of imported
food
items is that the
food
items from transnational corporations undermine the interests of local farmers and local
food
producers. Small farmers and producers can struggle because as transnational corporations gain more power through trade agreements, subsidies, and increased demand through investments abroad. They begin controlling many aspects of local
food
systems.
For instance
, transnational corporations control the whole
food
chain, from the production, trade, and processing, to the marketing, retailing, and distribution of
food
.
Additionally
, much of
this
control is concentrated within a few big companies rather than millions of smallholders.
Globalization affects
this
kind of
market
power in three ways.
First
, foreign companies become competitors with domestic producers by supplying
food
products to the domestic
market
.
Second
,
this
puts pressure on domestic producers, including small farmers, to lower their prices and increase their standards.
Lastly
, if domestic producers cannot lower their costs and increase standards without going bankrupt, they are forced to leave the
market
.
This
process allows transnational corporations to dominate domestic industries and put small producers out of business. A prime example can be when transnational corporations sell their
food
products at prices below the cost of production for farmers in developing countries, so it becomes increasingly difficult for domestic producers to compete.
To conclude sales of
food
products supplied by international competitors have a profound impact on the local economy. Overall, there needs to be greater dialogue on accountability and corporate social responsibility of transnational corporations; better support, protection, and resources for small farmers and producers in developing countries; increased funding in agriculture by the government; and an international policy framework that draws standards on competition and trade policy.