Ecuadorean Rose Industry

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The Ecuadorean Rose Industry THE ECUADOREAN ROSE INDUSTRY The country of Ecuador certainly has a comparative advantage in the production of roses and they are the fourth largest producer of roses in the world. Their customer base covers the globe (worldwide) and roses are the fifth largest export for Ecuador. Also, they have been producing roses for over twenty years with rapid expansion occurring throughout the years. Even the population has grown within the last ten years from ten thousand people to seventy thousand people, and most of the credit for this population growth is given to the rose industry. Moreover, most of Ecuador’s rose farms are situated in the Cotopaxi and Cayambe regions, which are approximately one hour’s drive from Quito, the capital of Ecuador. The altitude is approximately ten thousand feet and volcanoes rise more than twenty thousand feet. The rose farms are at the foot of these volcanoes within the Andes Mountains. The roses thrive because of the intense sunlight, the fertile volcanic soil, the high altitude and the location that is close to the equator. These are considered ideal growing conditions for the roses in the country. According to Hill (2013), “They have huge heads and unusually vibrant colors, including 10 different reds, from bleeding heart crimson to a rosy lover’s blush” (p.317). These conditions allow roses to flower almost year-round. In addition to this, the average wage is low at $210 per month, which is considerably less than in developed countries while being well above the minimum wage of $120 per month in Ecuador. This low wage allows the companies in Ecuador to realize a large measure of profits and also emphasizes the nation’s comparative advantage. Furthermore, it is true that most roses exported from Ecuador are sold in Europe and the United States with more than 80% being destined for the
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