Globalization Process in the Food Industry - European Experience

Abstract

There are some questions about globalization are looked for to be answered by developing countries in contemporary world. The authors will try to answer some questions: what is globalization? Is globalization essential? Is globalization needed in the food industry? What kind of risks and advantages does globalization have? Is it possible for each country to produce food products required by its citizens? At the same time, European experience in the globalization process of food industry will be analysed and then the transformation opportunities of this process from Europe to Post Soviet countries will be critically investigated.In general, the globalization of the world economy and the deepening of the international distribution of labor also affected food products. The role of globalization is important for countries so as to meet food products’ demand. Of course, there are some risks and some positive aspects as well. It is observed with launching environmentally unfriendly and low-quality products on market. Presently, most of the products that we commonly consume are the products of globalization. For instance, potato, rice, coffee, banana and other agricultural products. On the other hand, negotiations are underway and some activities are being implemented in Azerbaijan Republic in order to be a member of World Trade Organization (WTO), because the Republic of Azerbaijan confirms effective integration to the world economy as a strategic target of economic policy. As it is obvious, one of the discussed issues in current process of negotiations in order to be a member of WTO is the features of state regulation for agricultural industry. This issues is about the level of governmental support in the frame of mentioned regulation.Presently, broad discussions are underway in order to direct oil revenues to non oil sector. From this point of view, agricultural infrastructure, development of agroservices, financial support to agricultural producers and other government supports are the topics of strategic discussions of government. Therefore, the best experiences of European countries should be studied, analyzed and applied to the needed directions.