American food manufactures have exhibited a rapid financial growth and power in the modern global economy, these manufactures are highly diverse as to compete and fit in the sectorial economic scale, as a result, the American food processing entities have become more widespread and influential and have therefore been able to widened their operation scales and networks within the global economic sphere. Consequently, local entities within the very framework (food processing) have been greatly compromised in terms of performance and production but most particularly in marketing their products due to efficient and surplus production by their American counterparts. The dominance of American entities within this sector has then left the local entities with no option but to cut down their products prices in order to survive economically and support their operations for long term purposes. For this reason, the global activists for cultural diversity have shown their concern regarding better market performance by the American foods than the local foods, a case which subjects the local food producers to economic self-incapacity as well as unsustainability.
The widespread of The American foods in the global market undermines the local foods’ performance in the market, this is because the former seem to reach to the consumers more opportunely in terms of quality and quantity than the latter, and this therefore means that consumers derive more satisfactions and benefits from the American foods than the local food. The more the American foods are consumed, the more they are produced and the more they gain dominance over the local foods. This has direct implications to the local economic performance since the American producers engage in both intensive and extensive food production which not only competes local production but also outdo them in this sector. Thus, the local producers are bound to face perpetual low economic performance characterized by monetary losses, resource input and output imbalances and many more economic uncertainties which may ultimately lead to their cessation or downfall.
Similarly, for the local food producing entities to survive and sustain their operations without even doing well under such a condition, they have to adopt and implement more viable production and marketing strategies. Generally, the success of any commercial-based entity is the ability to acquire and retain its clients as well as the ability to survive and thrive in all economic dilemmas (Lukac, D. 2014). However, for the local food producers to live up to this principle, they have to strive and strain which is not even a guarantee for their success following the dominance and the much they have been outdone by the American producers. Thus, local food producers are more likely to wallow in a long-term deprived economic state.
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Kozmetsky, G., & Yue, P. (2013). Global Economic Competition: Today’s Warfare in Global Electronics Industries and Companies. Boston, MA: Springer US.
Lukac, D. (2014). Key Success Factors for Foreign Direct Investment (FDI): The Case of FDI in Western Balkan.