Case study - Bananas Flashcards

To understand world trade within a food commodity and its impact on fair trade (7 cards)

1
Q

Why are bananas important?

A
  • 4th most important food product globally produced
  • staple food in many cultures
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2
Q

Where are bananas produced?

A
  • produced in tropical regions with a hot and rainy climate
  • central america and the caribeans are where they are mostly exported
  • many of these countries are economically dependant on them
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3
Q

Deforestation facts

A
  • to produce 1 tonne of bananas 2 tonnes of forest needs to be cut down
  • more deforestation in places to produce bananas like in the Amazon
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4
Q

Patterns of consumption

A
  • 80% of bananas produced is for national/local consumption
  • India and Brazil consume a lot of bananas but also produce a lot
  • USA and the EU are the largest importers
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5
Q

What are the roles of TNCs in banana trade?

A
  • 90% of bananas trade value stays in HICs
  • creates a high inequality between farmers and distributors
  • TNCs like Chiquita control 45% of all banana trade
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6
Q

What caused the banana war?

A

Lome convention in 1975, the EU allowed former EU colonise a reduced tariff on bananas to protect their economies from TNCs

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7
Q

What did the TNCs do in retaliation in the banana war?

A

TNCs demanded the WTO to sanction the EU and they were forced to raise the tariffs back up

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