FIN 4810 Economics Report: Analysis of Global Banana Trade Operations

This report provides an economic analysis of the global banana market, focusing on two major players: Chiquita and Del Monte. It examines the nature of the product, income and cross-price elasticity, and the impact of government policies on banana producers. The analysis considers market structure, the influence of marginal cost, and the effects of the COVID-19 pandemic on global trade. Furthermore, it suggests government interventions, such as subsidies and tax exemptions, to support the banana market during economic downturns, and discusses the role of currency exchange rates in influencing export demand. The report concludes that banana demand is relatively price inelastic and recommends expansionary monetary and fiscal policies to address challenges in the global banana market.