EQ1 WTO cotton in Guatemala

Question 1

What happened in Guatemala in the 1980s due to the WTO?

Answer 1

-75% of guatemalas cotton crops were exported (taken out of country)
-The money made was used to buy equipment for future + pesticides

Question 2

What could guatamela have done instead of buying pesticides and equipment for future crops?

Answer 2

They could have processed its raw cotton into finished clothes and exported the clothes, meaning greater earnings.

Question 3

What did WTO policies make difficult in Guatemala?

Answer 3

-Made it difficult to produce cotton on less land for same income.
-Guatemala was stuck to exporting raw cotton until competition from other countries ended production completely in 2005.

Question 4

What occurs now in guatemala?

Answer 4

TNCs now import raw cotton into guatamela and use its workforce to procure cheap T-shirts for export

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