1. The basis of Ecuador’s comparative advantage in the production of roses is essentially their fertile lands where they cultivate their high-quality roses. The right amount of sunlight, fertile soil, location and altitude makes these roses flourish all year round. It makes them very distinct and superior to other roses grown elsewhere, that is why most buyers especially from the United States and Europe are willing to pay extra for these kinds of roses.
2. The importation of these roses primarily benefits Ecuador because the trade of these products contributes to the country’s economic stability. As stated in the book, the rose industry had created revenues which helped its government build infrastructures such as schools, roads and irrigation systems. Ecuador is able to develop itself through this. Second, United States and Europe also benefit from this because they enjoy having one the best roses available in their market without harming their health and polluting their environment.
The losers are also the workers and the government of Ecuador. Though it seems that employment and income is obtainable in their country because of this industry, there are consequences to be faced in the long run. Because of it, women are getting more ill and have miscarriages as well. If the health of these people is at risk because of the pesticides they use, they are also risking their most valuable resource, manpower. Sooner or later, they might not produce these roses well as they did and derive as much income like before. They may not grow the same high-quality roses that they are exporting now because of the environmental changes encountered by its land though the use of pesticides and other chemicals. The government has an obligation to protect and give support to their people. That is why they are directly affected if the health of these workers is not well due to their jobs. A huge amount of government funds must be allotted to unravel labor, health and...
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