Banana Trade Case Study Flashcards
Where are most of the producers of bananas located?
The majority of producers are located in LIC’s. Mainly between the tropics as this is where conditions are the most optimal for production.
Which area of the world is the core area for production?
Central and South America is the area with the highest relative production per capita.
What is India’s role in the banana trade?
India produce and consume the most bananas globally. However most of this remains domestic.
What was the market share of TNC’s like in the banana trade prior to fairtrade?
Until a few years ago, it was still possible to state that banana production and trade was very much dominated by four big TNCs: Chiquita, Del Monte, Dole and Fyffes.
The combined market share of the top four companies was at its highest in the 1980s, when they controlled at least 70% of world trade. They sell their own production and market the production of others under contract, using their well-known brands.
Whereas, by 2019, the 4 biggest companies only make up 40% of the global share.
What is the banana trade like in Ecuador?
Many banana producers neglect the health and safety of their workers. 200,000 people work to produce bananas in Ecuador and it is a big industry, however the humanity of the workers is not often considered.
To increase profit margin, producers in Ecuador’s banana industry use child labour, dangerous conditions, unfair wages and union suppression. Some of the sector’s corporate giants, including Chiquita and Dole, are notorious for labour abuse and exploitation.
Only 1% of their workers are in a Union and over 50% work 14+ hour days.
They are paid an average of $3.50.
What are the aims of fairtrade?
To support marginalised workers earning very little pay in poor conditions. Seen as a
counter to often ‘exploitative’ free trade.
What are the aims of free trade?
To increase the economic growth of nations through friendly ‘tariff-free’ trade policies.
Who are the main advocates of fairtrade?
Fairtrade International, WFTO (World Fairtrade Organisation) , some NGO’s and Nations.
Who are the main advocates of free trade?
WTO (World Trade Organisation), World Bank, IMF (International Monetary Fund) and MANY nations.
What is fair trade?
Fairtrade guarantees the worker a FAIR price for their product?
What is free trade?
Countries are able to trade with each other relatively freely without much limitations
