Why did the erosion of preferential access to European markets damage Caribbean banana and sugar producers?

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Question

Why did the erosion of preferential access to European markets damage Caribbean banana and sugar producers?

Accepted Answer

Because they could not compete on price with larger low-cost producers once preferences ended — Award 1 mark. It illustrates how an externally-set rule change can undermine a national industry. Narrow economic bases make such shocks severe.

Answer

Because they could not compete on price with larger low-cost producers once preferences ended

Answer

Because European consumers stopped buying bananas

Answer

Because Caribbean producers stopped growing the crops

Answer

Because production costs in the Caribbean fell

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