It’s the 4th of July, and Joe isn’t as excited as his parents are about the holiday. Gloria mentions that Joe should be excited to live in America because she grew up in a banana republic. The zinger is that Banana Republic is the only store available that she could have shopped at, but a banana republic is a political economy term used to describe a country with an economy that is dependent on a single export. Gloria, originally from Columbia, could also have come from a banana republic.
See more: absolute advantage, Banana Republic, comparative advantage, development, exports, inequality, international trade, political economy, trade
There’s a lot going on in this clip. The main focus is on Claire and Jay. Pritchett Closets (which Jay founded and Claire runs) has been selected to participate in the Expo Internationale du Closet! Both Claire and Jay are over the moon excited. But why? Participating in this event exposes them to an international market. They can expect a big increase in demand for their product. The second focus is on Manny. Manny has moved out but found that there are certain things about living at home that he really misses. This is something that a lot of people discover when they move out. These early lessons in personal finance can be tough!
See more: demand, expectations, international trade, personal finance, trade