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Banana Notes. Finally the connection between Globalization and Bananas!. Complete your graphic organizer!. How is identity affected by some economic, political, environmental, and social dimensions of globalization?. Introduction. Canadians eat up to 3 billion bananas a year
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Banana Notes Finally the connection between Globalization and Bananas!
Complete your graphic organizer! • How is identity affected by some economic, political, environmental, and social dimensions of globalization?
Introduction • Canadians eat up to 3 billion bananas a year • After apples, bananas are the most popular fruits in Canada but they do not grow in CANADA. • They are imported from Central and South America, but this is a source of controversy for many reasons.
Economic • Identity and Economic dimensions of Globalization. • Price is an important factor in buying decisions, low prices may be the reason bananas are so popular in Canada. • Economic factors to this low cost include: • Where banana's grow: huge plantations owned by transnational corporations which take advantage of economies of scale. (remember ? savings that come from producing, using, and buying things in large quantities.)
continued • On plantations, banana yields are often high because of heavy use of chemical fertilizers and pesticides. (meaning supply is often greater than demand)
Continued • Transnational corporations also control costs of ships, containers, and warehouses that are part of the banana distribution network. They can give themselves a deal and keep the profits. • Labor in Central and South America is cheap and few workers are protected by union agreements which also keep wages low. • Look at the map of page 51, Ecuador exports more bananas than any other country and is the leading exporter of bananas in North American grocery stores because of low prices. • Their prices are low because their workers are paid the lowest wages in Latin America. Working conditions are low, and include child labor and human right violations.
Political • Political Dimensions of Globalization. • Economics affects political aspects and decisions in the following ways: • Banana production is controlled by three American transnational corporations, Chiquita, Dole and Del Monte.
Continued • These companies purchase their bananas from Central and South American countries. However many Caribbean countries such as Jamaica and St Lucia, where farms are smaller and are run as family businesses, cannot achieve the same economies of scale. • As a result their costs are higher.
Political continued • The Banana Wars were an international trade conflict that pitted governments against one another • During the 1990's European governments agreed to continue extending an economic helping hand to former colonies, such as Jamaica and St. Lucia, No Tariffs taxes or duties, were placed on these bananas. At the same time, bananas from other countries were taxed and subjected to other strict import rules.
continued • This situation sparked trade conflict that has been called the "banana wars." • The transnational companies protested the European policy, claiming it was unfair. An American company, Chiquita, persuaded the United States to take the case to the World Trade Organization(WTO). • WTO rules state that member countries must treat one another equally. A country cannot, for example, impose a tariff on goods from one member country but not on those of anther.
Political Continued • In 1997, the WTO ruled that European countries • must change some of the trade rules that helped • banana farmers in their former colonies. But these changes did not go far enough to satisfy the American transnational's. To try to force even more changes, the American government imposed tariffs on many European exports to the United States.
Question? • How might these tariffs have become weapons in the banana wars? Who would be hurt by these decisions made by European governments?
Environmental! • Environmental • Why Biodiversity matters • To create large areas to grow bananas, tropical forests must be cut down, which leads to soil erosion and flooding. This destroys natural habitats and the reduction of biodiversity.
Environmental Continued • Also, large plantations controlled by “transnationals” produce just one variety of banana: the Cavendish. This variety is the most popular in North America and Europe because of it's taste and texture.
Continued • But growing just one variety of banana leads to problems which include pests and diseases that can spread quickly and wipe out crops. Banana plantations use synthetic fertilizer and pesticides and herbicides which can be hazardous to human health and put workers at risk. Also run offs can kill and hurt lakes, water sources animals and wildlife.
Question • Organic bananas are more environmentally friendly but cost more. • Would you pay more for organic bananas? • Does this affect your identity? • How does this affect the identity of workers?
Social Social Dimensions • All economic, political and environmental issues relate to social aspects as well. For example, low wages, unsafe working conditions contribute to low prices, which mean workers are not trained to safely handle chemicals, health problems become an issue. Social factors such as thugs come into play when people try to do something against these poor conditions.
Continued • Finally, the displacement of indigenous people happen as a result for the demand for more large tracts of land to create banana plantations.
