Name 1 :Abrarul Haque ID- 1931872630 Sl :28

Name 2 :Taslima Haque ID: 1721299030 Sl:4

Name 3: Morium jahan orthi Id : 1931730630 Sl :21

1. What is the basis of Ecuador’s comparative advantage in the production of

roses?

Answer :

Though Ecuador was an ultimate “banana republic” by being the world’s biggest
exporter of bananas, over the past two decades it has become famous for a
rather more fragrant crop.

Ecuador is the world’s third-largest exporter of cut flowers, 73 percent of which

are roses. So, I would say that the basis of Ecuador’s comparative advantages in
the production of roses is Ecuador's fertile land. Their fertile land makes the
roses distinct and superior. The soil of other countries is not as fertile as the soil
of Ecuador’s for good rose cultivation. The good amount of sunlight, fertile soil, of
Ecuador’s make these roses flourish. That’s why most buyers are willing to pay
extra for these roses.

2. What is the reason behind the growth of the Ecuadorian rose industry?

Answer :
The reason behind the growth of the Ecuadorian rose industry is its supportive
climate, rich volcanic soil , moderate climate with little wind, an equatorial
location, abundant and direct sunlight and high altitude serve the ideal growing
conditions of roses.It also has cheap labour which is approximate 103,000
people and generated $837m of business in 2013.The most advantage is its
natural light all year around,so that roses can grow in winter and don’t have to
use a lot of artificial illumination.It is located 3,000 feet above sea level, so
roses can grow closer to the sun.Most of the roses are found in the province
of Pichincha in the Andes at an altitude of between 2,800 and 3,000 metres.
Ecuador can grow the tallest, fullest roses in the world, it also boasts a huge
variety of colors and color combinations. Their roses are generally considered
the best of all flowers.
3.Before Ecuadorian rose industry was more focused on United States or
European
markets but now they are shifting their focus on Russian market, why? Who in
these
countries benefit from the importation of Ecuadorian roses and how do they
benefit?

Answer :
Ecuadorian industry is now shifting their focus on Russian markets as there is a
huge market for roses in Russia. Due to the recent economic crisis in Russia and
sanctions over Ukraine the export of ecuadorian roses to Russia fell by 30% in value
and 26% by volume. To add to Ecuador's problems other equatorial countries are
rapidly developing their own industries. Thus Ecuadorian industry will soon lose its
market in Russia if they don’t focus there.
As USA and European countries prefer roses with shorter stems thus
countries which produce such roses like European countries therefore they can
benefit from it greatly as these kinds of roses are also cheaper to produce.

4. How does the rose export industry benefit Ecuador?

Ecuador is growing rapidly because of the export roses in the developed country.
Almost 103000 people have been employed in Ecuador because of their rose
cultivation. In the national income rose export industry contributed almost $240
million in sales. Moreover most workers earn more than the national minimum
wages which is $120 a month as they earn around $210 a month plus health
care and pension.

The main competitors of the Ecuadorian rose industry are Kenya,

Zimbabwe and Uganda.They are developing countries with a lot of higher
altitudes.They also have great climates,lower labour cost and can grow the same
long-stemmed varieties of roses.

The United States is the most benefited country from the connection of
Ecuadorian roses because all the roses imported will be sold at the premium prices
in the shops around the country. Ecuadorean roses have been quickly become the
Rolls-Royce of roses.