Eadorian Roses Case Study

718 Words 3 Pages
1) 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. …show more content…
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 country’s $120 a month minimum wage. The farm also provides the workers with health care. So, the people benefiting are the employees, Ecuador as a whole, and the flower shops in the US and Europe who are able to do business with these imports. They also suffer because of the amount of money they are paying to get these roses. The benefits however; outweigh the costs because the United States and Europe have more money than Ecuador so …show more content…
Yes, other nations are benefiting by importing these prime roses however; is larger growers are being accused for misusing a toxic mixture of pesticides, fungicides, and fumigants to grow and export unblemished pest-free flowers than something needs to be done. Since Ecuador doesn’t really have the environmental safeguards that other nations do, they need help with reinforcement. If there is also accusations that people aren’t being protected, that they are having miscarriages and coming down with flu-like symptoms than something needs to be changed about the way the employer sets up the employees to work on these farms. Yes, importers should in some way certify Ecuadorean producers so that they can monitor what’s going on. They should also only import from those who adhere to strict labor and environmental standards because that way if there are unregulated operations being performed, the farms will want to regulate them so that they can gain profit instead of loose

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