The Ecuadoran Industry

1. What is the basis of Ecuador’s comparative advantage in the production of roses?

The basis of Ecuador’s comparative advantage in the production of roses is the many factors that contribute to their production. The key factors that come into play are the location, climate, and its natural resources. Another factor that contributes to their value is the skilled labor force that works for them and the many years that they have been producing and caring for these roses that are among the world’s best and most sought after.

2. Most Ecuadorean roses are sold in the United States or Europe. Who in these countries benefits from the importation of Ecuadorian roses, and how do they benefit? Who loses? Do you think the benefits outweigh the costs?

Many factors come into play when determining who benefits and who loses in the trade of goods between countries. As most Ecuadorian roses are sold in the United States or Europe the people who benefit in these countries would have to be the flower shops and other places that sell these outstanding, best of the best roses. Ecuadorian roses are of such impressive production that they import to shops they are guaranteed sales because their roses are of such high quality. With the huge quantity of importing of these premier roses the customers end up paying a little bit more for the roses but the rose farms end up generating over $240 million in sales. With the production of such a large income for Ecuador, they strongly benefit with the production and sales of the roses. Ecuadorian rose growers can also support tens of thousands of jobs, which help their rose productivity increase even more and the amount of people that they can employ. Ecuador not only generates many jobs, but also thru the revenue of the rose sales and taxes rose growers have helped to pave roads, builds schools and constructs a sophisticated irrigation system. Their employees earn average wages at $210 a month, but they are substantial compared to the countries $120 a month minimum wage. A benefit to both the United States and Europe is that they get to enjoy having one of the finest roses available in their market with the damage to their health and the pollution of their environment. It is said that Ecuador workers may be the losers in this rose growing business, due to their workers getting sick because of pesticide use. The government has an obligation to its citizens to protect them and give them support. Therefore, if their workers health is affected due to pesticides and chemical use they will not do well in their jobs and the production of the roses will fall. The benefits overweigh the costs because if Ecuador did not have the rose growers than their economy would fall and their people would