The Ecuadorean Rose Industry

What is the basis of Ecuadors 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 lovers 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 ross, 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 Ecuador support more jobs but also the revenues and taxes from rose growers have helped to pave roads, build schools, and construct sophisticated irrigation systems. The employees earn average wage and is substantially above the countrys $120 a month minimum wage. 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. 60% workers are suffering from nausea, headache, blurred vision
and fatigue. Child labor s also a drawback of it. The benefits overweigh the costs because without roses Ecuadors economy would go down. Airports and transportation has been developed so that a rose that is picked today in Ecuador can be in the United States tomorrow ready for delivery.

How does the roses export industry benefit Ecuador? Do these benefits have any implication for the United States and Europe?
Ecuador is the worlds fourth largest producer of roses. Roses are the nations fifth largest export with customers all over the world. Rose farms generate $240 million in sales and support tens of thousands of job. In Cayambe the population has increased in 10 years from 10000 to 70000 as a result of rose industry. The revenues and taxes from rose growers have helped to pave roads, build schools, and construct sophisticated irrigation system. By dispersing production activities to different location around the globe the US and European countries producers can take the advantage of difference between countries identified by various theories of international trade.

How should developed nations response to reports of poor working conditions in the industry? Should importers in some way certify Ecuadorians producers, only importing from those who adhere to strict labor and environmental standards?
Developed nation should take steps to respond to the poor working condition in the industry like the European Union improved environmental safeguards. In response some Ecuadorean grower have joined voluntary program to helping the consumers to identify responsible grower. The certification signifies that the growers have distributed protective gears, trained workers in using chemicals, and hired doctors to visit workers at least weekly. Other environmental groups have pushed for stronger sanction including trade sanction against Ecuadorean rose growers that are not environmentally certified by reputable agency.