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Q1: What is the basis of Ecuadors comparative advantage in the

production of roses?
Ans: Ecuador is the world's 4th largest producer of rose. The combination
of intense sunlight, fertile volcanic soil, an equatorial location, and high
altitude makes for ideal growing conditions, allowing roses to flowers
almost year-round. And also cheap labour and lowering the trade barrio
reason that Ecuador apparently has comparative advantages of roses.
Q2: Most Ecuadorian roses are sold in the United States of
Europe. Who in these countries benefits from the importance of
Ecuadorian roses, and how do they benefit? Who loses? Do think
the benefits outweigh the costs?
Ans: Most Ecuadorian roses are sold in the United States of Europe and
consumer will benefit because they can buy great quality at a lower price.
The florist sells their roses in various occasions like Valentines Day,
mothers day at premium price. By selling those roses they can earn a
great amount of profit.
Major rose produces in and outside of these two countries will suffer. They
will first lose customer which will lead to a lack of profitable business. Less
profit will lead to layoffs, which will soon lead to foreclosures and bad debt
with the government. The more bad debts you owe the more control the
government has over your life.
Q3: How does the rose export industry benefit Ecuador? Do these
benefits have any implications for the United States and Europe?

Ans: Just like Maria, many other people in Ecuador can earn and maintain
their regular life. Working on rose export industry courage social
revolution and mothers and wives can get more control over their families.
Government earns more taxes as there are more rose growers. By working
in this industry, they can get more wages and they can get healthcare and
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.
Q4: How should developed nations respond to reports of poor working conditions in this
industry? Should importers in some way certify Ecuadorean producers, only importing
from those who adhere to strict labor and environmental standards?

Ans: Developed nations should accuse of misuse of toxic chemicals and pesticides.
They should respond to the health issue of the workers. 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.