UNITED FRUIT

MINI-CASE

United fruit was a dominating company in Central America during the 1950’s. It owned large areas of most countries in the region and grew fruit for export-primarily to the United States.

 

United fruit employed many thousands of people and had a major influence on local politics and the economies of the region. In fact, it was accused of manipulating both.  When one country or town caused problems or made threats, United Fruit reminded the local people that it could close operations there and just produce more fruit in neighboring countries or villages.

 

In order to reduce local pressures, United Fruit reminded people that it built the roads and often provided free schooling for the towns. It sometimes provided other services, including some medical care.  However, growing resentment resulted in the Central American Countries uniting and presenting United Fruit with a united request.

 

United was asked to turn over the following:

 

· 10% of all its land holdings

· 10% of all its equipment

· 10% of all its buildings

· 10% of all transportation (both on land and on sea)

· 10% of all its market share in the US

· 10% of its profits

 

Questions:

1. What should United Fruit do?

2. Why?

3. When?

4. How?