lesson 13- world trade in bananas

Question 1

bananas are the _ most traded agricultural commodity

Answer 1

5th

Question 2

where are bananas mainly exported from?

Answer 2

Latin America and the Caribbean
-hot, rainy and tropical ( comparative advantage)

Question 3

how does banana farming have a negative effect on the ecosystem

Answer 3

they are treated with chemicals to prevent disease, but this is washed off
-largest agrochemical input into the environment apart from cotton
-farmers have no protection to them

Question 4

what are the banana trade wars

Answer 4

Ecuador was good at banana growing, but the EU didn’t care about its lower production costs, and instead supported banana growers in 12 of its former colonies, so the EU made bananas from African and Caribbean area more expensive
-their main target was ‘Chiquita’, US based, who controlled 40% of the EUs banana market in 1990, but their exports to the UK plunged as the UK highly taxed all non ex colony members
-Latin American countries have complained to the WTO over this protectionism

Question 5

what is the race to the bottom

Answer 5

a ‘race to the bottom’ has been fuelled by the low prices paid by supermarkets and the cost cutting actions taken by fruit companies as they relocate to LICs
-sacrifices quality, worker safety and fair labour costs

Question 6

what is fair trade

Answer 6

steady growth in ‘sustainable’ bananas
-due to growing market segment of ethical consumers who are willing to pay a higher price