chapter  5
20 Pages

Importance of Non-price Factors to Competitiveness in International Food Trade

WithMichael R. Reed

This chapter investigates the effects of some non-price factors on US agricultural exports by level of processing. General attitudes about the importance of the family, household size, percentage of women in the work force, and other factors differ by society and can influence the prospects of marketing efforts by firms. Again, as these family values and characteristics vary in foreign countries from a US reference, the more difficulty US firms will have in exporting highly processed foods because they will have to adjust their marketing strategy or product. Product placement is critically important for marketing food products internationally. Food distribution systems vary markedly between countries. For developed markets, the primary-stage tariff level was the trade-weighted tariff on agricultural raw materials, while the processed-stage tariff level was the trade-weighted tariff for all food items. The General Accounting Office is simply reiterating what it hears from the popular press: The United States must become more competitive in processed food markets.