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R. MA, 19/F China Overseas Building, 139 Hennessy Road, Wanchai, Hong Kong

Globalization is an ultimate goal for many multinational companies, but with rapid developments of high tech industries in transportation, computers, Internet, media, 3-band cellular phones, any small local issue can potentially become a global issue. The food industry is no exception. Incidents such as BSE, chicken flu, dioxin, etc. are examples. The issue of GMOs is another hot subject generating a lot of confusion. Managing all these issues is extremely challenging for any global company. Doing business in Asia, and especially in China, is unique because, in many cases, the food supply is linked to the stability of that country. Therefore, food supply-chain management is more complicated. Each country has its own set of rules and these rules are not necessarily related to Western business principles. Rather, they are linked to political, cultural, economical, or religious reasons. To get consensus in many areas seems to be an impossible task. International organizations such WTO, NAFTA, ASEAN, and APEB are very helpful but it is a very slow process to be globalized. When it comes to food trade, every country has some degree of protectionism. Each government put up many barriers on behalf of their people. Whether they are called tariffs, regulations, or other names, they all are barriers. The lack of knowledge and understanding of local business practices creates more difficulties. There are very few organizations that can settle disputes or get agreement on labeling, ingredients listing, etc. What is safe for one country can be banned in another. All these issues face companies doing business worldwide. Although the road to globalization is long, many things are being done to reduce or eliminate barriers, so we will get there eventually.