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Chiquita Bananas: An Empire Built on Controversy
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Chiquita Bananas: An Empire Built on Controversy


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Chiquita Bananas: An Empire Built on Controversy

Chiquita Bananas: An Empire Built on Controversy

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  • 1.  
  • 2.
    • Operate in many host countries
    • Often conduct R&D activities
    • MNE’s cut across national borders
    • Often directed from a company planning center that is distant from the host country
  • 3.
    • A controversial issue involving the conduct of MNE’s is their effect on the economic and political policies of the host and source governments
    • Many nations fear that the presence of MNE’s in a given country results in a loss of its national sovereignty
  • 4.
    • United Fruit Company was Founded in 1899
      • Purchased of Nipe Bay in 1907 and Saetia Sugar in 1912.
      • Bought Samuel Zemurray's Cuyamel Fruit Company in 1930
      • United Fruit purchased A&W restaurants and root beer in 1966 and Baskin-Robbins ice cream in 1967
    • Eli Black, founder of AMK, bought United Fruit Company in 1970 and changed its name to United Brands.
    • The firm became Chiquita Brands International in 1990
  • 5.
    • Chiquita’s main industry is fresh fruits, vegetables and processed food
    • The company grows, procures, markets, and distributes bananas and other fresh fruits and vegetables under the premium Chiquita and other brands
  • 6.  
  • 7.  
  • 8.
    • Throughout the 1900’s the term “Banana Republic” has been associated with the banana producing countries of Central and Latin America
    • In 1974, the company paid a $1.25 M bribe to the President of Honduras in return for an export tax reduction applied to bananas.
  • 9.
    • In 1985, Costa Rican environmentalists filed a lawsuit, on behalf of banana plantation workers
    • Chiquita secretly control dozens of supposedly independent banana companies
    • Chiquita fruit-transport ships have been used to smuggle cocaine into Europe
  • 10.
    • In 2008, the New York Times described how U.S. based Chiquita reached a $25M settlement over allegations that U.S seniors in Chiquita signed over $1M in payments to death squads in Columbia
  • 11.
    • First quarter financial report stated Chiquita made a $31.7M profit in 2008, after losing $3.7M the same period the prior year
    • The actual amount of bananas that people bought dropped by 1% in the U.S & 14% in Europe
  • 12.
    • In 2008 Chiquita opens large plantations in Africa, Mozambique , and Angola, to get around the European tariff regulations
    • Many compare George Bush to the CEO of Chiquita Bananas by not being able to make reasonable statements
  • 13.