Abstract: Genetic engineering is a rapidly emerging issue all over the world. Regulation systems are totally different, the product-based one focuses on the product (substantial equivalence), while the process-based main characteristic is precautionary. There are still some countries where there is no GMO law or regulation. The topic itself is controversial. The USA is the leading producer of genetically modified products, however, developing countries have higher (and continuously growing) share in production since 2011. GMO provides an answer to important questions like food security (malnutrition and hunger) or industrial production (e.g. biofuels) but raises many others such as food safety (health risks) or different side effects. This article focuses on the economic aspects of the topic.
Keywords: gmo, product- and process-based regulation, price premium, food chain