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COMMERCE IN ECUADOR - Coggle Diagram
COMMERCE IN ECUADOR
TRADE IN THE ECONOMY
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Most of the local or commercial establishments are small family businesses with up to five workers or on their own, where women play a very important role.
OWN BUSINESS
Due to the lack of sources of employment or fixed jobs, many people have opted for small street sales as the only means to earn a living or to supplement family income.
Most people engaged in business in more than 10 employees are located in retail trade. They represent 49% of the total of people dedicated to the commerce.
Then, 39% of the total of employees of the commerce sector belongs to the wholesale trade, that is, to the sale of large quantities of merchandise. And, finally, the remaining 12% of workers and employees corresponds to the activity of vehicle sales and retail fuels.
LARGE BUSISNESS
The impact of the presence of large commercial companies not only affects the small business but also the consumer.
Producers are also affected because large trading companies impose production standards on their suppliers and change the characteristics of traditionally consumed products.
CONCENTRATION OF TRADE
Trade is concentrated, above all, in the provinces of Pichincha and Guayas, because there are the largest economic activity and the largest cities in Ecuador: Quito and Guayaquil.
In wholesale trade, the two most important activities are the sale of household goods and food, beverages and tobacco. This means that the sale of household, consumer goods is the most important (60%).
In the retail commercial activity, the sale of food, appliances, articles and equipment for domestic use is also the highest. It represents more than half of the country's retail production (51%). This confirms the high power of consumption at the level of families.
The participation of women is more important in trade than in other sectors such as manufacturing or industry, where there are more men employed. The greatest concentration of female labor is in the retail trade.
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FOREIGN TRADE
Oil exports are the most important. The foreign trade of bananas, shrimps, cocoa, flowers and tropical fruits is remarkable. Progressively, the country is diversifying its exports to other regions and countries of the world, especially the neighboring and Latin American countries.
Imports of goods come from the United States, the European Union, Asian countries, Japan and China. Countries that are suppliers of consumer goods, lubricants and fuels, raw material for the national industry and machinery. Ecuador is heavily dependent on these imports. This is an important cause of the decapitalization of the national economy