The Banana Wars Case

1. If you were a member of the Organization of American States and its Permanent Council, with which wiz would you side? First of all, it depends on your vision of the problem. As for me, I can see two polar approaches to this problem * Economics * Social. If you provide take first approach into consideration, you have to choose Latin American countries, because they were discriminated by EU during long period of time. They had a quota of 2. 2 million tons with a tariff for all banana ($1,150 per ton) and former colonies had a preferential access to the EU market.Moreover, the unit-cost of merchandiseion in the Caribbean is nearly 2. 5 times what it is for Latin American producers, so their product is much cheaper and easily to produce. As for kind approach to this problem, you should choose the Caribbean countries, because banana exports are the mainstay of their economies, so they wont win the competitor of Latin American countries and their economies will fall down. Econom ics falls will affect lives of people in these countries, so in social approach you have to choose their side. 2. Given the WTOs decision, what are the alternatives for the EU and the Caribbean banana growers?As for EU, they will have cheaper price for banana in their countries. But if there is a local producer inside the country, he wont survive in this competition with Latin American countries. Taking into consideration Caribbean banana growers, their future is not very optimistic, because their banana export will continue to decline due to Latin American competition, so their workforce will seek for a new job. But mainly all of those who will lose a job wont find a new one, because in Caribbean countries banana exports are the mainstay of their economies.So they should concentrate more on tourism, rather than bananas export, because, as it was said in the case, the minister of tourism estimated that every acre of prop up used for tourism is three times as profitable as one used for suppuration bananas. These steps will create more jobs for native people and will improve economic bureau in these countries. 3. What types of strategic moves will an international marketing manager of Latin American banana exporter chafe? Well, first of all, he should improve export to EU after WTOs agreement, because they have fewer tariffs, so they can compete with Caribbean countries.So, he should make whatsoever advertising in EU countries in baseball club to win the competition and decide what amount of bananas he should exports to EU markets. Moreover, he should find out closely Europeans attitude to bananas from Latin American countries. If it is not good enough, he should make some things in order to improve this attitude, such as * He should show the good quality of his product * He should show that during the process of gathering and delivering bananas, they follow health-code standards * He should promote this product in EU markets * And so on.