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Globalization and Profitability Adjustment Patterns in International Food and Consumer Products Industries

The study encompasses an analysis of the variation in speeds of profitability adjustment and accounting bias by developed country and firm size for two important agribusiness industries. Evidence of speeds of profitability adjustment and accounting bias varying by firm size was found in the beverage and tobacco industry and by country in the food and consumer products industry. This suggests that the competitive pressures of globilization are less of a factor in the food and consumer products industry.