Ecuadorian Rose Industry

Topics: International trade, United States, United Kingdom Pages: 2 (752 words) Published: March 21, 2013
The Ecuadorian Rose Industry
1. What is the basis of Ecuador’s comparative advantage in the production of roses? Ecuador’s rose farms are located in the just about perfect position for growing long and straight roses or at least most of the farms. They are positioned at about 10,000 feet elevation in the Andes Mountains. This provides the roses with high altitude, volcanic soil that is very rich in ingredients, and located on the equator. This gives the roses about 12 hours of daylight every day. (Graham) This provides an intense amount of sunlight, so farmers use plastic sheeting to create a greenhouse effect. I believe this helps keep the roses from burning up, being so close to the sun, and from freezing on the cold nights. (Hamilton) It creates a sense of perfect temperatures. (Thompson) 2. Most Ecuadorean roses are sold in the United States or Europe. Who in these countries benefit from the importation of Ecuadorean roses, and how do they benefit? Who loses? Do you think the benefits outweigh the costs? In 2006, the United States accounted for 61% of the Ecuadorean roses’ total sales. This made us the largest market in this rose industry. Europe accounted for 20% of the exports of Ecuadorean flowers, while these flowers accounted for 31% of the United States flower imports. (Alvaro) Both countries benefit overall because they can imports the roses at such a low price and most of the profits stay in the imported country. (Graham) I believe local growers are the ones who lose in this situation. If buyers can find them for a lower price, most will take it so they can keep more profits. This isn’t necessarily the best option for our country, but some companies do not care about the greater good of helping our own country. 3. How does the rose export industry benefit Ecuador? Do these benefits have any implications for the United States and Europe? With the increase of rose and other flower exportation from Ecuador, the country’s export...
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