Globalization is the process of integration of Governments, Citizens, Corporations around the world with one another. The net income from this practice facilitates an increase in food security.
It has allowed agricultural production to grow at a fast rate. A few decades ago the growth rate was around 3% which has increased to 5-10% in recent times resulted from the full scope of export and import markets and easy availability worldwide.
Due to this large aggregate, trade is possible in commodities that were previously regarded as niche such as high-quality coffee & Tea.
It is evident that globalization has made trade more comfortable, but restrictions tend to drive up the cost of exports. Thus, competitive advantage is to be seen on each component of the supply chain, not just for the final product.
If comparing the current times with the past four decades in the presence of globalization, one can notice the Structural Change in global agricultural markets, Technological changes & Trade costs and in agricultural trade policy reforms.
With this background changes in agricultural comparative advantages for the next four decades can be asserted like the upcoming growth in population, income and farms productivity. The down trend in economy due to the global disturbance caused by the pandemic might have slowed down the economy but the long-term growth rates by 2050 may not be affected by this and its advantages on farm produces.
The Information and Communications Technology (ICT) revolution might continue to lower trade costs which might force governments to lower the remaining barriers to FDI in retailing and associated logistics services.
Thus, the process of globalization has not only opened up the economy but also accelerated the cross-border movement of goods and ideas.
This process has revolutionized world agriculture directed to improve the efficiency productivity & cost competitiveness.