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