the demand and supply

A disease damaging banana crops in Southeast Asia has spread to the Middle East and
Africa, posing risks to world supply and trade totaling $8.9 billion, according to the
United Nations' Food and Agriculture Organization.
The TR4 strain of Panama disease, a soil-born fungus that attacks plant roots, is deadly for
the Cavendish banana that makes up about 95 percent of supplies to importers, including
North America and Europe, Fazil Dusunceli, an agriculture officer at the FAO, said. ...
\X/hile the disease hasn't reached top Latin America exporters such as Ecuador, Costa
fuca or Colombia, TR4 was discovered in Jordan and Mozambique, indicating it moved
beyond Asia, he said.
"The export market is dominated by the Cavendish, and it is unfortunately susceptible to
this particular race of the disease," Dusunceli said. "This is serious for the medium term,
but at the same time we should avoid panicking too."
Global exports reached a record value in 2011 and
totaled 18.7 million tonnes, making bananas the
worldt most widely-traded fruit, according to the
most recent FAO data. The U.S. is the top importer,
followed by Belgium, the data show. Belgium's Port of
Antwerp is the world's largest banana port, it says.
Consumer prices for bananas were 1 3 1 .8 cents a
kilogram in February, 2.2 percent higher than an
almost three-year low reached in October at 128.9
cents a kilogram, according to data from the Bureau
of Labor Statistics. The export price of bananas from
Ecuador, the worldt biggest shipper, and Central
America for North American destinations was $966.85
a tonne in March, the highest in 18 months, according
to the International Monetary Fund, ...
'!Tritten by Whitney McFe rron. Copyright @ 2014. Used by pe rmission of Bloomberg
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OUESTIONS TO BE ANSWERED:

Explain how this case study is related to some ot:tt G*ori*oncepts;-mined in this course (EC.N 21 1)' (3 marks)
What is the importance of this case study to "onrrr..,,

producers and govemment? In your view which of these three

economic agents is uff".t"J ,-nort by the issues discussed' in this case study and why? (3 marks)
Based on the information provided in the case study would you agree or disagree that there is "allocation efficiency" in the
market for bananas and why? Is there ,.fairness o. .qrity" in the market for bananas, and why? Explain carefully' (2 marks
Is this case study related to globalization? If so how; if not why not? Explain carefully' (2 marks)