Background information BANANAS AND GLOBALIZATION Case Study

“How Is Identity Affected By Some Economic, Political, Environmental, and Social Dimensions of Globalization?”

My friend asked me if I wanted a frozen banana, I said "No, but I want a regular banana later, so ... yeah".

How is Identity Affected by Some Economic, Political Environmental, and Social Dimensions of Globalization? Economic: involving the selling of resources and money Political: involving a country or its government Environmental: related to the environment Social: relating to human society

What are the leading Tncs for banana production? Dole 26% Chiquita 25% Del Monte 16%

Just the facts Bananas are < $1.50/kg Apples are ~ $3.00/kg Why are banana prices low for Canadian consumers? Huge TNCs grow their bananas on large plantations Costs are low & profits are high

Just the facts Banana supply often exceeds demand – this drives prices further down TNCs own their own ships, containers, and warehouses (vertical integration) They are able to control their own costs labour in Central and South America is cheap, few workers protected by unions = low wages

WHAT IS A BANANA PICKER WORTH? Banana workers in Ecuador are the lowest-paid in Latin America

WHAT IS A BANANA PICKER WORTH? Male banana-plantation workers were paid $6.40 Canadian/day How much would they earn in one month if they worked six days/week? (multiply weekly earnings by 4.3, the numbers of weeks in a month) A family of four in Ecuador needs at least $220 Cdn a month to meet basic needs. How did the worker’s monthly earnings compare with this minimum? In order to survive many families put their children to work in the banana fields

Your task Complete page 1 of “Slicing the Banana” Complete the chart before you actually cut your banana into eight parts

2 cents 8 cents 10 cents 10 cents 10 cents 10 cents 10 cents 40 cents The answers 2 cents Banana Pickers Central America Land Owners Shipping Company USA Importer Wholesaler Processor Distributor Canada Retailer 8 cents 10 cents 10 cents 10 cents 10 cents 10 cents 40 cents

The profits from bananas

Goin’ Banana’s…. From Ecuador to Canada Review Figure 2-9 and read the opening two paragraphs on page 50 Why would bananas be a “source of controversy”?

Dimensions of Globalization Answer the questions for column one: Economic Dimensions Review the chart, including the questions (see handout) Read: Identity and Some Economic Dimensions of Globalization (Pages 50-51)

Ecuador & the Banana Trade You will be placed into groups of three As a class we have just completed the Economic Dimensions column of the handout. Momentarily, you will be numbered off one through three. Each of you will go to one of the three assigned EXPERT groups and answer all of the five questions for the one dimension assigned to your group. You will have approximately 15-20 minutes to do this. #1 – Political Dimensions #2 – Environmental Dimensions #3 – Social Dimensions When finished, return to your original group of three and share your EXPERTISE with your other two group members. They will do the same for you. When you are done, your chart WILL be filled in completely.

Why would bananas be a “source of controversy”? The Slippery Summary Economics: Low wages for plantation workers mean low banana prices in Canadian supermarkets. Political: Decisions by European governments were influenced by transnational corporations that wanted to keep prices low for consumers. Environmental: To keep production high and satisfy consumer demand, hazardous chemicals are used on many banana plantations. Social: The need for large plantations to produce enough bananas to meet consumer demand has led to the displacement of the Indigenous peoples who lived on the land. Why would bananas be a “source of controversy”?