The advantages that allow Ecuador to produce great and abundant roses are mainly made up of the agricultural/climate condition, along with location and workforce. Since the town of Cayambe is located 10,000 feet up near the mountain the high-altitude makes for ideal growing conditions. along with the combination of sun-light, fertile volcanic soil, equatorial location allows for the roses to be grown all year round. This allows for a great advantage over a lot of competition, because production can say consistent all year long keeping steady amount of export.
where on the other hand if production was slowed down by weather conditions for a few months this would negatively affect the exports. Another comparative advantage that is obtained is the fairly low monthly income that Ecuador has, this allows for companies to pay employees relatively low wages. Although some companies may pay employees well over the countries average income, in comparison to many more developed countries/. , the dollar amount is significantly less.
2) Most Ecuadorians roses are sold in the United States or in 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 cost? The main parties that would benefit from the sales of Ecuadorian roses in these countries are the retail stores that sell the roses (flower shops, grocery stores, speciality stores etc. ) and the consumers themselves. The retail stores have the benefit to an all year round supply of great roses that are in very-high demand.
The quality of the actual rose is much better that what local producers can provide and there is constant access to them.
The consumers have the pleasure to purchase amazing roses that were not being offered before, and access to them all year round as well. The main losers in these countries are the local producers that once supplied all of the retail stores. They are now presented with great competition, and can not compete with the actual quality of the rose. It is a special breed that only grows in the perfect growing conditions that are provided in Ecuador (Cayambe). Depending on what country these suppliers are located in, the climate may change severely in the winter time not allowing for the growth of roses for a few months a year.
This makes it almost impossible to compete with the all year supply and demand coming from Ecuador. These suppliers will then need to make budget cuts which usually lead to pay cuts and lose of jobs. This will then start affecting the overall economy of the country that the roses are being sold in, because Ecuador will dominant that specific industry. Although many retailers are thriving with this product, helping the overall economy, the well being of a whole industry is at risk which leads me to the assumption that I do not think that the benefits outweigh the negative attributes. ) How does the rose export industry benefit Ecuador? Do these benefits have any implications for the United States and Europe? The rose export industry has done wonders to the export aspect of Ecuador’s economy. It has allowed for a larger portion of the population to be employed by the many rose manufacturing businesses. This allowed for the quality of life to increase result of the boost in new incomes especially those of newly employed mothers. It had also allowed for many families to feel more stable and able to expand, causing the population to increase from 10,000 to 70,000 in 1 years.
These implications will affect USA and Europe because they are allowing Ecuador to becoming a more sovereign and independent country. This will then make for a more concrete and solid trading partner for both countries increasing the import and exports between all three parties. 4) How should developed nations respond to reports of poor working conditions in this industry? Should importers in some way certify Ecuadorian producers, only importing from those who adhere to strict labour and environmental standards?
The poor working conditions of the rose industry should be recognized by developed countries and not encouraged, or ignored. Actions should be made to insure that products purchased and imported are not endowing the mal practices that are not to be enforced in any country. y doing nothing, and continuing to import products, this encourages the situation and allows for more and more employees in Ecuador to become sick and work in extremely dangerous conditions. I think that it would be a good idea for these countries to only import from the companies that have meet the environmental standards.
Although this may cost many employees in Ecuador their jobs at the start, this in the long run will only make the workplace a safer place. This will encourage all companies not some, to incorporate proper training and medical care/benefits into the lifecycle of every employee. On a downside however such polices may lead to such practices as bribery or black mailing, to allow the exporting of certain products. Overall I feel it would be highly beneficial for both parties (developed countries) and (Ecuador) if there were rules and regulation that had to be followed in order for the roses to be brought into that country.