Abstract
The Latin American banana industry has undergone major transformations over the last hundred years, resulting from the strategies of Transnational Corporations (TNCs), changes in relative factor prices, political conditions, and technological change. This paper illustrates how these factors have interacted to change the roles of the principal producing countries in the world banana trade. It focuses in particular on the “associate producer” system, which has increased the flexibility of TNC's, allowing them to shift production sources as conditions change and to transfer some of the burden of short term instability onto local producers.
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