Marketing 4 Essay Example | Topics and Well Written Essays - 750 words

Marketing 4 - Essay Example Exporters suffer sometimes by this depreciation. Simply put, it means that the exporters will get lesser returns as compared to what they used to get and this can have an adverse effect on their profitability. This has happened in Colombia also. (Kraul, 2007) Most of the exporters have been affected but none as much as the rose exporters. One reason is that there has been fierce competition from countries such as China, Mexico, Ecuador and the strengthening of the peso has only seriously affected the share of the Colombian rose exporters in the total world trade for this particular commodity. (Ponsi, 2007) There is no doubt that the Colombian peso can be described as being on a â€Å"hot streak† and this is good for national pride and the feel-good factor. (Kraul, 2007) This also greatly helps tourists going to American tourist spots such as Disney World since it means that the Colombians now have more money to spend but for a certain section of the populace like the rose exporters, it has brought serious problems. So serious are these problems that some exporters have been forced to close shop or retrench staff. Many of these staff members are women who had taken loans and who had mortgaged their houses; now with them losing their jobs, they will find it extremely difficult to make both ends meet since a fair amount of their income was going towards repaying their housing loans taken. Rose exporters are now receiving up to forty percent less than what they used to receive about four years ago. Apart from this there has been an increase of the labour and material cost to the tune of another forty percent. As a result of all this, rose exporters’ income has gone down by almost 100 percent as compared to what they used to earn about four years ago. No doubt the U.S.Dollar has declined by about thirty percent against the major world currencies; the decline has been even more against the Third World currencies. This has happened since there has been a big