Globalization, Intermediaries and Rural Development.

It is understood that intermediaries are an important bridge between supply of and demand for agricultural products.  In many cases they identify buyers in foreign markets.  It is apparent that their activity has direct effects on the welfare and efficiency of local producers.  Whether or not these effects are positive depends on intermediaries’ bargaining power, producers’ decisions about verticalization and/or the institutional environment of the home country, including state and legal capacities.  Globalization has the potential to magnify these effects.

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