In regard to the Chiquita International case, which of the following is an incorrect statement about the common EU policy on banana imports?

Question

In regard to the Chiquita International case, which of the following is an incorrect statement about the common EU policy on banana imports?

BlackTom AI · Accepted Answer

In handling the question about the Chiquita International case and the EU banana policy, it helps to examine what each statement implies about the common policy.
Option 1: 'The common policy established preferential banana trading rules for former colonies of the EU countries.' This aligns with the historical design of the EU banana regime, which granted favored access terms to bananas from former European colonies while regulating imports from other sources. In other words, preferential treatment for certain former colonies is a recognized feature of the policy.
Option 2: 'Germany, one of the EU members, was against the formation of the EU’s common policy.' While national positions can vary during policy development, the practical history of the EU banana regime shows broad consensus-building among member states rather than a singular veto by Germany. Germany generally supported the broader European integration framework, and there isn’t a well-documented, singular stance of Germany opposing the policy’s formation that would render this statement fundamentally accurate as a blanket claim.
Option 3: 'The common policy created a surplus of bananas and decreased banana prices in the European market.' This statement would require that the policy produced an oversupply and lowered prices. In practice, the EU banana regime was designed to manage supply and protect certain producers, and its effects included price support and controlled imports to maintain stable prices within the union. Describing the policy as creating a surplus and decreasing prices oversimplifies and mischaracterizes the intended market dynamics and outcomes of the regime, making this statement a misleading characterization.
Option 4: 'The common policy weakened the position of the Chiquita company in the European market.' The regime favored producers tied to the former colonies and established regulatory advantages that could complicate access for non-preferred suppliers such as Chiquita. This framing suggests that Chiquita’s market position faced pressure due to the regime’s protective measures for other producers, which is a plausible impact of the policy and thus can be considered a reasonable description.

Across these options, the most problematic or incorrect claim is option 3, because it asserts a specific outcome (a surplus and price decrease) that does not accurately reflect the market effects of the EU banana regime, which sought to manage imports, protect certain producers, and stabilize prices rather than simply creating a surplus that lowers prices. The other statements reflect typical interpretations of the regime’s structure (preferential access for former colonies), typical dynamics of multi-country policy processes (varying positions but overall cohesion), and plausible competitive effects on a multinational like Chiquita.

SP25 G202 Kreft & Mafi-Kreft Self-Test Quiz 3

In regard to the Chiquita International case, which of the following is an incorrect statement about the common EU policy on banana imports?

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