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 due to the 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 globe.
However
, some experts believe that shops should
trade
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 to avoid selling imported
food
is that transnational corporations undermine the interests of the local farmers and local
food
producers.
This
means that small farmers and producers struggle because these corporations have more power through
trade
agreements, subsidies, and increased demand through investments abroad. They usually control many aspects of local
food
systems.
This
includes the control the
chain, from the production,
trade
, and processing, to the marketing, retailing, and distribution of
food
.
For instance
, imported products occupy primary shelves in the supermarkets, leaving the local producers outside.
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 is exactly what allows transnational companies to dominate domestic industries and put small producers out of business. In many cases, TNCs 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 has 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.