Ecuador

Economically, Ecuador became known for exporting Panama hats (straw hats so named because they were shipped to Panama in the mid-18th century and bought by traveling gold seekers and because they were worn by Panama Canal work crews in the early 19th century) and agricultural products, notably cacao (the source of cocoa beans), bananas, and flowers. It is a major exporter of petroleum and an increasingly important tourist destination. Its history has been marked by political and economic challenges, including long periods of military rule, boom-and-bust economic cycles, and inequitable distributions of wealth. Ecuador is unusual among Latin American countries in having two major centres of population and commerce, the vibrant port city of Guayaquil acting as a counterbalance to the capital, Quito, located in the Andean highlands in the north-central part of the country.