Chiquita Brands International - Case Study Example

In regards to the EU common banana policy detail who lost and who benefited? (Make sure to think about all the parties affected by the common policy.)

After the EU came up with the high tariffs, the people who were affected and lost were those from Latin America (especially the farmers who were supplying the bananas and the traders) and those relying on the bananas from Latin America (the multinational companies). Those who benefitted were those that had not imposed trade quotas and tariffs and therefore received the former customers of Latin American bananas. The other benefactors were nations and companies that reduced their restrictions and tariffs on importation or exportation (Spar 7).

Detail the many politically motivated (lobbying intensely) actions that Chiquita took to counteract the EU common policy and analyze why they were not met with greater success in terms of breaking down the imposed trade barriers in the European market.

One way to counteract the EU policy was to seek measures that involved lobbying trade unions that represent the interests of its citizens who are affected by foreign trading policies. This measure is not only political but legal as well but the process takes long due to verification of the policies and the bureaucracies. The solution achieved by this lobbying is either middle or long-term as the trade unions seek to prevent other companies in the future from these policies (Spar 13).

The other channel that may be open and provide a solution to the foreign policy issue is seeking powerful politicians to lobby against the imposition of such policies by foreign bodies which “hurt” the companies in their country. This can be done through coming up with bills and lobbying during political meetings and sittings and seek not only a temporary but permanent solution as well. The problem with this just like with the other solution is the time it will take before implementation is done hence not providing a short-term solution.