Essay About Trade Theories And Ecuador’S Competitive Position

Ecuador: A Rosy Export Future?
Kelsey Maggio INBS250_01FA16 Ecuador: A Rosy Export Future?Discuss each of the trade theories that help explain Ecuador’s competitive position in exporting roses. Ecuador is in an extremely competitive position when it comes to exporting their magnificent roses. Ecuador has many advantages as to why they are so successful growing roses especially their production and climate. As far as production, Ecuador has plenty of workers to harvest allowing them to stay on pace. The roses are also safeguarded while being grown, protecting them from any damage. Ecuador also has an advantage because of its climate. There is plenty of sunlight, rich soil and being located at a high altitude benefits the production process. But what makes roses from Ecuador so special? Their vibrant colors and size allows them to be priced higher which could potentially increase profits.What trade theories do not help explain Ecuador’s competitive position in exporting roses? Why is this so? Although there are trade theories that help explain Ecuador’s competitive position in exporting roses, there are of course those theories that do not. Although there are other countries that grow roses, Ecuador’s comparative advantage allows them to produce their specific produce more efficiently than others. Ecuador’s country size also contradicts its competitive advantage. Small countries typically depend more on trade than larger countries.Look back in Chapter 1 to the factors in increased globalization and explain which have influenced the growth of the world trade in cut roses and why.The growth of world trade in cut roses is influenced by both expanding sales and improved technology. Fortunately over time the demand for roses has heightened, pushing producers to increase their available supply. Those that have presented Ecuador with contracts are looking for a reliable long term source that can produce these specialty flowers in mass quantities. Ecuador has taken these factors into consideration and has done an excellent job keeping up with sales. They have also utilized their tools and have evolved with technology making production easier and eco-friendly. Manufacturers have done a recognizable job at minimizing waste through the production process which has resulted in lower costs. Think back to the external environmental conditions (cultural, legal-political, and economic) discussed in Chapters 2 through 4 and discuss how these have affected and might affect future demands for Ecuadorean roses. There are three main external environmental conditions that may affect and might affect future demands for Ecuadorean roses. Culture may play a part in this specifically when it comes to dialect and language.  If countries struggle to communicate with each other they may have further issues with business or they may not want to work together at all. An economic factor to be considered is the wealth of different countries. Some countries may not be able to afford to work with Ecuador as others might. Different countries have different governments, and different ways of doing business could both negatively and positively affect trade depending on which country is benefitting.