Safeguards in Ecuador and its incidence in the economy of border locations

Abstract

This research work was carried out based on the need to know the effects caused in the economy of the border cities such as Huaquillas in the South and Tulcán in the north, by the application of safeguards to imports. For the execution of the analysis, the Huaquillas canton was taken as the main reference. From the study conducted it was known that most of the merchants are engaged in the sale of clothing. Following the application of safeguards these businesses reduced sales levels, forcing traders in many cases to decrease the payroll of workers, causing an increase in the unemployment rate, and even to liquidate merchandise in order to recover part of your investment; through the respective surveys it was possible to establish the level of affectation that the merchants received because of the safeguards, the reduction in the capital flow and the recurrence of the clients in moving to the other side of the border to purchase products of lower cost, that undermines the economy of these cities; in this way, through the obtained data, the respective conclusions could be established according to the results extracted from the respective study.