Business Law

Topics: Developed country, United States, International trade Pages: 3 (875 words) Published: February 16, 2013
The Ecuadorean Rose Industry
What is the basis of Ecuador’s comparative advantage in the production of roses? Ecuador has a comparative advantage when it comes to the production of roses. Ecuador not only has plenty of workers to help cut the rose stems at the farm, but also the landscape and climate in Ecuador is beneficial to the growth The bushes are protected by 20-foot-high canopies of plastic sheeting. The combination of intense sunlight, fertile volcanic soil, an equatorial location, and high altitude makes for ideal growing conditions, allowing roses to flower almost year-round. This farmland produces prime roses. They have huge heads and unusually vibrant colors, including 10 different reds, from bleeding heart crimson to a rosy lover’s blush. This helps Ecuador because since they have such a great production of roses they are able to sell them for premium prices in stores from New York to London. Most Ecuadorean roses are sold in United States or Europe. Who in these countries benefits’ from the importation of Ecuadorean rosés, and how do they benefits? Who loses? Do you think the benefits outweigh the costs?  

Most Ecuadorian roses are sold in the United States or Europe. The people who benefit in these countries are the flower shops and premier places selling the roses. Because of the wonderful production of roses that they are importing to their shops, they are guaranteed sales because of the quality of the roses. The customer might lose out a little bit because of the price of the roses, since it seems the company is paying good money for the roses. The rose farms generate $240 million in sales. Therefore the United States and Europe are importing lots of roses to sell. Ecuador also strongly benefits because with this large income coming in for their exports, they can support tens of thousands of jobs, which will help their rose production increase due to the numbers of people that they are able to employ. Not only can Ecuadorsupport more jobs but...
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