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THE POLITICS OF MODERN STATES FOOD POLITICS: WHAT ARE THE BENEFITS AND THE COSTS OF GLOBAL TRADE IN FOOD PRODUCTS - Essay Example

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Name: Tutor: Course: Date: University: What are the benefits and the costs of global trade in food products? Introduction The global trade in food has continued for millennia; however, what is different today is the place, the extent and who controls the global trade in food products…
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THE POLITICS OF MODERN STATES FOOD POLITICS: WHAT ARE THE BENEFITS AND THE COSTS OF GLOBAL TRADE IN FOOD PRODUCTS
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"THE POLITICS OF MODERN STATES FOOD POLITICS: WHAT ARE THE BENEFITS AND THE COSTS OF GLOBAL TRADE IN FOOD PRODUCTS"

Download file to see previous pages The recorded growth has been compounded by the growth of free market economics, and the rise of trade agreements such as World Trade Organization’s Agreement on Agreement, and the European Union’s single market policy, as well as institutions that have promoted liberalization of global trade. Most governments appreciate that a strong national food industry is a critical supplier of food to the population and view food exports as a critical part of maintaining balance of payments and gaining foreign exchange (Jermy, 2012). The growth of global trade in food products can be attributed to several factors. First, the arena of food microbiology, food technology, and food chemistry are perpetually availing an expanded range of foods by developing innovative and more refined preservation, packaging, and processing techniques that render food safer, less perishable, and highly attractive to the consumer (Aksoy and Beghin 2005, p.37). Secondly, the advanced transportation systems, industrialization of agriculture, emergence of dominant transnational corporations, and enhanced handling methods have minimized the length of time and difficulties linked to transporting food for long distances, hence allowing traders access to fresh and far-away markets. Thirdly, the consumer tastes and food habits have become more diverse, and their incomes and purchasing power has risen, invigorating the demand for conventional and new foods from other regions (Ingco and winters 2008, p.252). The notion of whether a country is a net food importer or exporter hinges on a number of factors such as local conditions for food manufacturing, agricultural production, costs and demands for both domestic or foreign food products, as well as participations in economic activities that avail other sources of income. The Benefits of Global Trade in Food Products The benefits derived from the global trade in food products can be summarized as enhancing the domestic competitiveness, sustaining cost competitiveness within the domestic market, minimizing dependence for food supply on existing markets, stabilizing seasonal market fluctuations of food supply, and propelling gains in the global market share for food products. The increased supplies of global food products emanating from the liberalization of yields lower domestic prices for consumers, in the same way that the added demand for the international market will result in higher prices and additional jobs for the producers of the food products, especially within developing countries (Cline 2004, p.134). Undoubtedly, the global trade in food products has led to cheaper and more plentiful agricultural produce, which, in turn, has had a spill over benefits to the overall health of societies. The global trade in food products promotes maximum utilization of resources/efficiency (especially surplus produce) and minimizes trade fluctuations. The global marketplace for food products manifests large supplies and an extensive demand, which helps to stabilize food prices (Brewster Kneen 2002, p.100). The global trade in food products also promotes international trade, thus fostering peace, mutual understanding, and goodwill among nations. The interdependence between countries yields a close cultural relationship between countries. The global trade in food products accounts for a significant part of a country’s gross domestic product. Similarly, the global food products trade is also a significant source of revenue for a majority of developing ...Download file to see next pagesRead More
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