Economic Motives · World History

The 'Banana Republics' of Central America were characterized by:

  1. Highly diversified industrial economies
  2. Economies dominated by a single export crop and controlled by foreign corporations
  3. Strong democratic institutions and labor unions
  4. Total isolation from the global market
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Correct answer: Economies dominated by a single export crop and controlled by foreign corporations

In nations like Honduras and Guatemala, the United Fruit Company held more power than the local government. The economy was built around the export of bananas to the US, leading to political instability and foreign intervention.

Difficulty: Medium Question 17 of 20

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