Define "banana republic."

The term "banana republic" refers specifically to a politically unstable country in Latin America that is economically dependent on a single commodity, most commonly bananas. This definition captures the essence of how such nations often developed; they would have a political system characterized by corruption and dictatorship, with their economies heavily reliant on the export of a single agricultural product. The influence of foreign corporations, particularly American fruit companies in the early 20th century, played a significant role in shaping both the economic conditions and political climates in these countries.

The concept highlights the vulnerabilities and challenges faced by nations that do not diversify their economies and instead rely heavily on one export, making them susceptible to fluctuations in global markets and external political pressures. Recognizing this context allows for a deeper understanding of the socio-economic dynamics in Central American countries historically labeled as "banana republics."