The United Fruit Company was an American company which monopolized the trade of fruits (primarily bananas in Guatemala) in Latin American countries. The UFCO bought a vast majority of farming land in Guatemala, allowing for excess land in case of frost. Using the risk of crop loss as their motives behind such vast land ownership, much of Guatemalan land was owned (much of it unused) by the UFCO.

Operating as a sort of American imperialist presence in Guatemala, the company held more power than any other company in the country. Using their political leverage, the UFCO held Guatemala in a situation of dependency. Few attempts to curtail UFCO's power were made for fear of a loss of economic support through trade bans.

Newly elected Guatemalan President Jacobo Arbenz Guzmán threatened and made attempts to rein in the UFCO, demanding that the company's land be redistributed to the Guatemalan public. Arbenz was the first to respond negatively to the UFCO in a public sphere. In 1954, Arbenz was killed by U.S. forces after the UFCO made claims of a Domino Theory in Latin America and the United States.

The UFCO used the Dependency Theory to keepLatin American countries under the control of the Imperialist company. Guatemala's economy needed the UFCO to trade their bananas, and the U.S. to bring new good into their lands. The US effectively controlled several Latin American countries (especially Guatemala) through the UFCO and the economic benefits associated with their organization.

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