The Creation Of A Company For Importing Ecuadorian Handicrafts To China Based On The Comparative Advantage

The importance of China in the international community has been growingrapidly during the last decades and in order to thrive nowadays it is important forevery country to have a strong relation with it. For this reason, the Ecuadoriangovernment has made extensive efforts to support Ecuadorian producers and exportersto develop their business. Nevertheless, due to cultural differences and economicalinequalities, this process has been especially hard for the Ecuadorian side.Due to the inequality between China and Ecuador, in terms not only of populationand size, but also economical and technological, the trading between these twoNations has brought a negative commercial balance to Ecuador. Because of thissituation, the use of the Theory of Comparative Advantage seems like the rightapproach to try to correct this disparity. It states that despite the fact that one of thenations is superior in most aspects, by focusing on the products on which they aremore competitive, both countries can grown their economy and improve the lifestyleof their people.The objective of this dissertation then is to establish a plan and directions for thecreation of a company that can serve as a bridge between the Chinese market andEcuadorian producers, without them having to make major investments and with theright counseling to make the most out of their investment and production. Also, withthe support of the Ecuadorian Government, another goal is to increase the knowledgein China of Ecuador and its products.In the end, we find that it is plausible to create a company that can benefitEcuadorian exporters and also be profitable in the long term. It’s leverage andmanagement will come from Ecuadorian investors and the products in the short‐middle term to be imported to China are those that support fair trade, speciallyTagua nuts and Tagua blanks.