America is a major participant in the global economy, interacting with developed and underdeveloped world, to create expansion, business continuity, and a competitive advantage. One area of interest is the nation of Peru. With a population of 29 million people in a land that is rich with natural minerals and resources, Peru is an excellent candidate for marketing and business opportunities. However, when developing an industry in a foreign nation, it is important to be aware of the disadvantages and advantages of the region of interest in addition to the cultural dimensions of the people. Understanding the culture of the area and its relationship to business and economy is imperative when operating an industry, especially when emerging in a new market. Organizations should be aware of the social, economic, and political environment of a nation before taking on a business venture. As a result, this analysis will provide information concerning the nation of Peru, to include Peruvian culture, social dynamics, government, religious affiliations, and business perspectives.
Located on the west coast of South America, Peru is a country rich in culture, diversity, and history. It is the 4th highest populated country on the continent, with an abundance of natural resources and minerals. From steel, copper, gold, and natural gas, Peru is a country with many resources available for mining, refining, and extraction. A country with a growing and expanding economic resources, many businesses and investors have shown an interested in expanding in this region. It is a tourist destination for people throughout the world, as it is home to ancient and historical sites. As a result, many people come to see architecture of the old world and remnants of the Inca Empire. Understanding the current climate and environment of the country, analyzing and interpreting Peru’s cultural dimensions, and contrasting business success and opportunity to American corporations, industries and business investors can develop and implement a marketing and integration strategy that will aid organizations entering the global market.
ALL ABOUT PERU
Peru is a South American country rich in history and culture. Located in the north western region, along the Pacific coast, the people, terrain, culture, and demographics of the area is a unique blend of diversity. Peru boarders Brazil and Columbia that make up part of the Andean Highlands of the central region and the Amazon Basin located in the east, (Doing Business, 2009). Consequently, the landscape of the area changes throughout the area from coastal shores, mountain highlands, and into the national rain forest. Lima is the capital of Peru and also the largest and most populated city. The country also surrounds Ecuador in the north and Chile to the south. Along with the variety of landscape, there are also differences in climate and topography throughout the country. On the pacific coast the land is arid with dry and barren like conditions which change in climate and weather further east. Towards the east the climate is humid and rainy. The variety and diversity of the landscape and climate can also be observed in their culture, ethnicity, and socio-demographics.
History and Ethnic Diversity
Peru is home to 29.2 million people, more than half of which are an ethnicity known as Quechua, (Koc, 2010). Quechua are the natives of Peru and descendants of the Inca Nation which has great historical significance and cultural influence in the country. The country was discovered during the Spanish exploration of the 1500’s. Within a few years, the Inca’s were conquered and killed by the Spaniards. This event changed the country and culture into what we see today. The result of Spanish exploration and the conquest of the people and land, Inca’s were killed by the thousands. A new nationality spawned an ethnic blend of Spanish and Inca that represent the Quechua who are the native Peruvians. This ethnic blend also merged cultures, which developed a new language, religious belief, and customs. However, some cultural aspects from the Inca’s are still practiced by Peruvians today. This includes the love for dance, art, and music. Today, Peruvians are a multi-cultural and multinational society. As many as 45% of Peruvians are descendants of the Inca, 37% are mestizo “mixed Amerindian and White”, the remaining population include, Black (of African descent), Japanese, and Chinese. Although the majority of Peruvians are offspring of indigenous natives or a blend of Spaniard and Native, Peruvians are also culturally influenced by their Asian and African counter parts that make up the ethnic diversity of Peruvian people and culture.
Spanish Cultural Influence
By the 1800’s Peru was independent from Spain. However, the conquest made a lasting influence on the culture and customs of this country. Spanish is the official language of Peru which is spoken by 84% of Peruvians. The remaining 13% speak Quechua which too is recognized as the official language. However, an even smaller percentage, less than 2%, speaks Aymara another indigenous language native to the area. Due to Spanish influence, the majority of Peruvians are Roman Catholic while the remaining religious denominations of the population are Evangelical Christians, other, or unspecified who make up less than 20% (CIA, 2013). As observed in the language, religion, and ethnic blends, Peruvian culture is a consistent blend of the ancient world of the Inca Empire mixed with Spanish style and influence. “Peru has… developed its own modern music culture complete with Symphony Orchestra”, (Koc, 2010). In addition to music, Peruvians also have a flair for plays, paintings, and literature. Peru is home to an artistic movement that included religious overtones and “the plight of the native people”, (Koc, 2010).
The Republic of Peru is not a 3rd world country. They are a civilized independent nation. The government is a democratic state that operates under the guidance of the Constitutional Republic with similar central government structures observed in America. The current President, Humala was elected in 2011 by a popular vote and subject to serve a 5 year term. The country has an Executive, Legislative, and Judicial Branch. In addition, the country has an adequate education and health care system in place. This is observed as more than 90% of Peruvians are literate. The country accounts for 1 doctor and 1.5 hospital beds for every 1,000 people with the average life expectancy being 72 years old. Furthermore, nearly 70% of Peruvians have access to sanitation and clean water, (CIA, 2013). Peru is a South American country that is very much a part of the modern world. Providing citizen’s access to healthcare, improving rural areas, and expanding urbanization, Peru has a growing and expanding national economy.
The U.S Central Intelligence agency indicates that since 2002, the Peruvian economy has continued to grow at a rate of 6.4% annually, (2013). The economic growth is attributed to the variety of resources available in the area in addition to a stable and slowly appreciating exchange rate and low inflation. More than 60% of the economy comes from exports of mineral and private investors, (Doing Business, 2009). The minerals mined for exportation include steel, metal, gas, petroleum, and rubber among others. Fish is also a popular export along with beer. The exported minerals account for $47 billion dollars in national revenue. However, Peru is notoriously known for coco, the primary ingredient of cocaine. Although exportation of minerals has accounted for the economic success of Peruvian society, they are heavily dependent upon the importation of food supplies. Importation of goods account for $41 billion, which nearly matches the amount earned in export revenue. This has created an imbalance import and export dependency. However, this has not stunted economic growth. A little more than half of the population is in the labor force three quarters of which work in the services industry, while less than a quarter work in the industrial industry. (CIA, 2013). The dependency on importation of food can be observed in their agriculture sector, where less than 1% of the nation works in and supplies this industry. The imbalance and dependency on exportation of minerals and importation of foods may account for the 30% of Peruvians living in poverty.
BUSINESS AND PERU
As an importer and exporter of minerals and goods, Peru is an open and equal participant in the global trade market. Consequently, Peru does business with many countries and companies around the world. The primary source and destination of trade and transactions remain with China. China has a large economic influence in Peru, operating 18% of exportation and trade between the two countries. United States tails China, followed by Canada and Japan. Other countries that work closely with Peru in the global trade market are Spain, Chile, South Korea, and Germany, (CIA, 2013). Although the country is culturally diverse, when communicating or conducting business relations in Peru “Peruvians are very formal in social relations than most North Americans and Europeans”, (Koc, 2010). Especially when dealing with foreigners, Peruvians always use a formal greeting and maintain politeness at all times no matter the relationship or association.
It is courteous to communicate with Peruvians in their native language, (Rushton, 2010). Although some may know or be familiar with the English language, the visitor is always expected to speak in Spanish. With a strong Spanish influence, formal titles are always used- “Senor” and “Senora”. Culturally, Peruvians have two surnames. This is because they adopt both their father’s surname and their mother’s surname. As a result, when addressing a Peruvian formally they should be called by their father’s surname which is always the individual’s second name. So, if someone’s name is Armando Bravo Ramon, than he would be addressed as Senor Bravo, (Rushton, 2010). Being polite also includes addressing everyone present individually upon entering and exiting a room and to shake everyone’s hand. Foreigners may also be expected to exchange a hug as a sign of friendship, partnership, and acceptance.
When conversing with Peruvians, it is customary to ask personal questions about one’s life. As such, this should expected when communicating with Peruvians. This includes interest in family, hobbies, and religious orientation. As Catholics, family always comes first and is most important before business. Therefore, asking questions and expressing interest in one’s family is a form of courtesy. A personal topic for Peruvians, however, is politics. Thus, the culture here is considerably different. Topics such as drug cartels, political perspectives, terrorism, and government should be discussed with care and consideration. For instance, drugs like “coca” for Peruvians are a cultural tradition and not considered a harmful agent. Many Peruvians chew coca leaves or drink coca tea and have done so for centuries. Due to this, they may have a different outlook about the coca industry and its use and benefit to society. Although Peruvians consider it polite to ask personal questions, they look down on people who are boastful and bragging. Either way, Peruvians insist on maintaining eye contact during conversation and close interactions. Peruvians have close personal spaces, this means that people stand and talk in close proximity to each other, (Doing Business, 2009). For Americans, this may be invading and uncomfortable. However, this is a common practice in Peru and should be expected.
Organizations and investors who have an interest in conducting business with Peruvians must first understand their culture and customs towards business interaction. Researchers indicate that, “it is hard to enter this market, most of the time you require a third party to introduce you to the company”, (Koc, 2010). This means that, if not personally introduced through inside contact or networking, Peruvians will not conduct business with the interested party. This is important and cannot be over stressed. Many businesses and organizations are unable to develop a relationship with Peruvians because of this. Thus, individuals who attempt to call to schedule an appointment or show up unannounced will be turned away. Therefore, first contact and introductions are crucial. Without an introduction by someone familiar with the business, a new entrant or even an investor, will be denied. In addition, Peruvians as a culture have a relaxed concept of time. They called this, “la hora peruanna or Peruvian time”, (Rushton, 2010). Although Peruvians are likely to be late for a meeting, foreigners are expected to be punctual. For the foreigner to be late for a meeting is considered rude. However, once the meeting begins there is no time for chit-chat. The meeting will go fast and there is no beating around the bush. Peruvians go straight to the order of business, “conduct[ing] business in a brisk, efficient manner”, (Koc, 2010).
Peruvians typically do not trust foreigners and are cautious of them, (Rushton, 2010). Because of this, negotiation between Peruvians and foreign businesses can be competitive and often take time. Negotiations can occur over a significant period and requires patients. Meetings will happen and negotiations will follow without any agreement being made. Peruvian businesses practice a top-down model of hierarchy in terms of business structure. Consequently, all items of business are conducted with CEOs and members of top management. They conduct all levels of negotiations and will take the time they need, when it comes to making important decisions for business. Other cultural influences that effect business dimensions are attire. As a conservative society, they prefer conservative and corporate attire. Sneakers, tennis shoes, and sandals are not appropriate, (Countries, 2012). These are shoes that are only worn to the beach and or at the gym. In addition, the more clothes you wear the better. Businessmen who wear a vest or button-up shirt without the jacket, is considered poor attire. No matter the weather, business men must always wear a full suit. The same is said for businesswomen. They should not wear dresses, short skirts, or short sleeves. Thus, as customary in the United States, it is suggested that businessmen dress conservative to include a suit and tie. Women are allowed to wear pants suits and skirts, jewelry, and make up are fashionable and socially acceptable as well, (Doing Business, 2009). Peruvian businesses are typically open 6 days a week, between the hours of 8am and 6pm. Sunday is observed as a day of rest. Most businesses and offices close between 1pm and 3pm for lunch. However, January and March is the season for vacations and holidays. Furthermore, there are also holidays and festivals that occur during this time of year. Consequently, it is unlikely to be able to conduct business with Peruvians during those months.
Religion and Tourism
Religion strongly influences Peruvian Culture. As most Peruvians are Catholic, churches and cathedrals in addition to statues of patron saints are found in every town and city throughout the nation. “Peru’s largest religious celebration, the Senor de los Milagros… takes place in Lima during the month of October”, (Catholicism, 2009). Therefore, the culture, government, and businesses are conservative in practice. Despite the strong religious influence on the nation, the country protects individuals of different denominations. They participate in International and Religious Freedom, and have laws and policy giving citizens the right to worship any God, gods, or deities. In 2011, the Peruvian State Government announced that, “there were no reports of societal abuses or discrimination based on religious affiliation, belief, or practice”, (US Department, 2004). Although a large portion of the population is Catholic, the country also represent other religious denominations including Seventh-day Adventist, Mormons, Jehovah’s Witness, Muslims, Jews, Bahais, Krishnas, and indigenous faiths. People of different faiths should feel comfortable in this country due to their religious rights and laws protecting religious freedom.
Tourism is a large enterprise throughout the country. Peru is most famous for historical monuments dating back hundreds of years from the Inca Empire and Spanish Conquest. Many people including tourist, historians, archeologist, and anthropologist flock to Peru because of its historical significance and the structures left from the ancient world. Machu Picchu is famous and a notorious ancient city, recognized for its massive design, and astronomical correlations, (Peru Tourism, 2012). It is also home of the Nazca Lines in the desert and the Amazon River. Furthermore, people also seek Peru for tourism due to their cultural and religious festivals that occur all year round, in addition to Adventure sports such as white water rafting, mountain climbing, or hike the Amazon Rain Forest. Peruvians also call it a “privileged … strategic location venue for international meetings”, (Visit Peru, 2012). Therefore, Peru is taking advantage of its terrain, history, and culture for business and economic profit.
Peru and America are fundamentally different in many ways. However, understanding these differences is essential to business success and opportunity in the country. Cultural differences, geography, and government are the root of the cultural clashes of Peru and America, despite this there are similarities between the two countries that is parallel to one another. This can be seen in the cultural dimensions discussed and analyzed throughout this research, including politics, religion, and education. Although they are different customs and cultures, there are just as many similarities as there are differences between America and Peru.
One such example is seen in the influence that the indigenous culture has on the current society. It has made Peru a culture that is fond of music and dance, as well as acknowledges ancient rituals and practices. As such, “Peru celebrates some 3,000 festivals a year”, (Peru Tourism, 2012). Peruvians celebrate the winter and summer solstice known as the Inca festival of the sun, which is a festival with indigenous roots. The Wine Festival that occurs in March is a festival linked with the Afro Peruvian Culture and the Peruvian Paso Horse Competition is a festival with Spanish origins that occurs in Spring, (Countries, 2013). However, Holy Week is a festival that includes the diversity of Peruvians. Holy Week is a week dedicated to Catholicism and Christianity. However, the method in which the week is celebrated has native indigenous roots. The week is a long stretch of parades to include Jesus, Mary, and Saint John. Citizens adorned the streets with flowers, greet their patrons and saints, and finally dress in clothes of mourning while they walk the streets burning candles.
Americans do not celebrate a holy week except certain religious denominations. Christians may celebrate Palm Friday and Resurrection Sunday, however they do not recognize the entire week like American Catholics or Jews who celebrate Passover. However, in many ways, Americans participate in festivals and rituals just as much as Peruvians. Americans celebrate Thanksgivings, the Super Bowl, and Mardi Gras all of which could be considered festivals and celebrations. So, while it isn’t recommended to schedule business in Peru during the months of January and March, the same could be said for the month of December, and the summer months for Americans, (Festivals, 2009).
In terms of politics, Peru and America are governed in a similar manner. Both countries are democratic nations with a president, congress, and branch of justice. This allows a balance of power between various parts of government. The legislative branch is made up of more than a hundred senators who are also elected for 5 years like the president. Although Peru is democratic, unlike Americans, Peruvians vote for their president based on popularity. The more popular and charismatic the candidate, the more likely he is to win the election. Therefore, the public does not vote for an individual based on their political stance or ideas on important social issues. Despite this, the socialist party has continued to gain momentum in Peru because of the popularity vote, (Countries, 2013). This is much different from American politics and culture. Here, the president is elected based on his political perspective and goals for the nation. In addition, although the president is given a public vote by the citizens, the Electoral College are the ones who formally elect the president. So, although the Peruvian government may mimic America’s democratic system, why and how they elect and choose their president is much different.
Peru has observed problem areas in “allegations of unlawful or unwarranted killings by police, and… military recruits”, (Peru, 2004). In a State report for Human Rights, the country admitted that “on occasion” police have tortured and abused people in their care, (US Department, 2004). This includes people detained by officers and prison inmates. In addition, Peruvian Military has a problem with hazing their new military recruits. Many associate these problems with the central government including the judicial system. There have been continued complaints of mistreatment of the judicial process including prolonged detention, excessive trail delays, and an overall inefficient criminal justice system, (Peru, 2004). Others have also complained with the central government concerning high incidents of human trafficking, racial discrimination, and controlling the media. However, these are many problems that America is faced with today. Just last week, the Georgia House passed a legislation that would improve the Juvenile Justice System. It would give judges the ability to provide alternative options for children besides incarceration. In addition many find the American criminal justice system ineffective due to the high incarceration rate of African Americans, people who are uneducated, or those who committed nonviolent crimes such as substance abuse, (Lowe, 2012).
Like Americans, Peruvians take pride in national heritage and identity. Peruvians are proud of their nation and their country. They find identity and unity in their language, history, religion, music, and food. Despite their national identity, Peruvians make up 4 separate ethnic groups, Whites, who are considered elite, followed by Natives, Blacks, and Asians. Historically, Natives have received the most discrimination and social division. Many natives still live in rural parts of the country and hold strong to their customs and beliefs. However, more and more are moving into urban areas. This migration has reduced discrimination and stratification throughout the country, however not by much. “Indians are still portrayed as backwards and inferior and perform the hardest and less remunerative forms of labor”, (Countries, 2010). This is also the case in America. Whites are considered the elite, while Blacks, Hispanics, Asians, and Native Americans represent the minority. Like the natives of Peru, people of color including Natives Americans and Black Americans have been discriminated against for centuries. The Natives of North and South America were both conquered by European explorers and faced genocide. Furthermore, today Hispanics are provided the most laborious and lowest paying jobs. In many ways, Peru and America face the same issues of discrimination and social stratification. This could be associated with European exploration and the influence of European culture had on conquered and newly discovered lands.
Different nations and societies have different norms and customs that are associated with that region. The same could be said when comparing the cultural norms between America and Peru. One cultural custom observed in both societies is cat-calls. It is customary for Peruvian men to whistle at an attractive woman, the same way that men do in this country, (Countries, 2013). They also flirt openly with beautiful women like American men. However, eye contact between two people in Peru has different meanings and understandings. While eye contact between two men is considered courtesy and respect, eye contact between two women is observed with criticism, disdain, and unattractive. Eye contact between two people of the opposite sex is an expression of desire and longing, (Countries, 2013). In America, there is no true significance or interpretation of eye contact between two parties. Eye contact occurs between two parties as a sign of listening and understanding. Sometimes, eye contact can also be a shared moment between two people or a form of flirtation. Other difference in customs can be observed. In America, the sign for okay (the thumbs up) is a sign of vulgarity in Peru. It has the same meaning for Peruvians as the middle finger means to Americans. Furthermore, “you should keep both of your hands above the table during a meal unlike in the US it is considered impolite to rest your hand in your lap”, (Koc, 2010).
“It is often claimed the inefficient business regulations and procedures lock enterprises into a vicious circle of informality, where firms have little effective access to financing and are constrained in their ability to grow and prosper”, (IEG World Bank, 2013). Because of these dangers, among others, it is important the international business organizations become aware of the implications of doing business in Peru. While some should be concerned with taxation and international regulations, others should be aware of the environmental security and sustainability. Becoming familiar with these implications is necessary when participating in the global trade market. With the associated risks and probabilities known, organizations can better strategize and prepare for business partnership with Peru.
A number of implications have already been identified throughout the body of the research. One implication includes language barriers. It is strongly recommended that individuals doing business with Peruvians speak the language. It offers not only courtesy but additional leeway throughout the business process. This includes when communicating with Peruvian businesses to working with government officials. Other implication identified is the need for patients. Not only is patients required when communicating and negotiating with enterprises, patients is also needed when establishing licensing procedures and documentation. “Information for all the documentary process (red tape) tends to be spoon fed, one morsel of data at a time, and you can find yourself going back again and again to be told that you need to give one more piece of information”, (Griffis, 2013). Therefore, patients should also be practiced in this area as well. When doing business in Peru these things should be applied and expected as it may take a significant time to receive the documentation required for doing business.
Another area that businesses should be area of is taxes. “For those wishing to participate in this booming area of Peru’s economy it is important to consider the tax implications of real estate transactions, especially any individual tax obligations that might arise when buying or selling in Peru’s real estate market”, (Flores, 2010). The real estate market is a growing industry throughout the country. As a result many people are purchasing and investing in land for real estate development. This includes new and emerging international businesses attempting to market or trade in the area. While citizens and residents are only required to pay 5% for real estate sold for capital gain, foreigners are expected to pay 30% to the Peruvian government for taxation, (Flores, 2010). This is a significant amount and can change the price an organization is obligated to pay to obtain real estate. Corporate tax is also problematic for foreign investors in this region. “Companies incorporated in Peru are considered domicile for income tax purposes and therefore, subject to income tax at a 30% rate on net income determined on a worldwide basis”, (De Maras, 2011). In addition to this there is also a shareholders tax which may also apply to foreign businesses and investors. Peru applies a tax for foreign entities which transfers Peruvian shares into or from a foreign entity. Lastly, Peru also has a tax treaty established. The country is part of the Andean Community of Nations. As part of the agreement with the Community of Nations, Peru has a tax treaty in force. This ensures that there is no double taxation when conducting trade. Considering the high rate of taxes for foreign nationals already in place, conducting business in this region can be costly and an added financial risk.
Peru and China
When conducting business in this area, business partners and investors should be aware of the economic partnership and trade relationship between China and Peru. Not only is China in partnership with Peru, they have developed a strong relationship with all of Latin America associated with mining and mineral extraction. “Over the past decade, Latin America has become China’s most dynamic trading partner, with exports and imports growing twice as fast as those of other regions”, (Muir, 2011). This relationship with Latin America is fueled by the drive to become competitive in energy industry. China works close with nations like Peru, to mine and extract gold, copper, zinc, mercury, and natural gas. The relationship between China and Peru can be problematic for business organizations and investors. If interested in the mineral industry, one may find that this is a highly competitive market. The Chinese dominance and business mobility within this region can swallow or absorb an organization that stands in the way of their goals. To affirm and maintain a relationship between the two countries, China has diligently worked to enhance their bond. The Chinese government made a commitment through legislation to “promote mutual respect and mutual trust and expand common ground based on the 5 Principles of Peaceful Coexistence, China and Latin America and the Caribbean…and promote the economic and social development of both sides”, (Muir, 2011).
Recently, Peru supported the International Corporation’s Business License Simplification Project that would make it easier for international corporations to obtain business, mining, and operations licenses. Although the project was designed to help support international organizations, the project was unable to meet its objective. Enterprises that participated in the project, “did not exhibit significantly higher average revenues, profits per worker, or employment”, (World Bank, 2012). The Peruvian government enacted this project to encourage foreign trade relations. Like mentioned previously, it takes patients to conduct business with Peru. Many are turned away by this. While some pushed through the process, they continue to find it difficult to conduct business in the region. The formalities of marketing in this area put investors at risk. It gave firms, “little effective access to financing and are constrained in their ability to grow and prosper beyond the status of microenterprises”, (World Bank, 2012). When working with Peru, the procedure took an average of 100 days and cost as much as 40% of the organization’s annual per capita. However, even with the policy in place it continues to be a long and costly investment to conduct business in the area. The cost to licensing decreased by more than 10%, however this has hurt the country financially and the study failed to demonstrate a speedy process.
“For the U.S… newly opened markets around the world create new opportunities for economic growth”, (Maceas, 2012). As a result of international trade and globalization, both countries can greatly benefit from the partnership. American companies can increase profitability and business continuity by investing in areas that can improve American economy and Peruvian economy. With the agriculture, resources, and goods available in this country, Peru can have less dependency importation and exportation to support the economy. Different enterprises are looking to expand and reach different shores around the globe by offering their goods and services to the world. In many instances, an organization can save in operation, goods, material, or production cost when transporting or expanding their business in the international market. However, when conducting business in Peru, investors may find that it is a costly endeavor and may prove to be a financial risk. As a foreign agent, international investors are expected to spend a significant amount of money just getting started. Most of this money goes to taxes. For a growing and dynamic country like Peru, improving international trade it could help provide the country the necessities it needs for continued economic growth and success.
Introducing Peru to services and goods offered throughout America can improve the Peruvian society. The country can create a competitive advantage among other nations as a region open to globalization and international trade. A country that is rich and vibrant in national resources, should open its shores to foreign nationalist to improve urbanization, reduce poverty, and create more jobs for its citizen. However, this is easier said than done. In a country that is rich in cultural diversity and history, many continue to flock to Peru for many reasons. Weather it is to attend one of the many festivals, visit the ancient cities or participate in the global market, Peru continues to be place of interest for many around the world. Although Peruvians are apprehensive of foreigners and business can be costly, there is no evidence to suggest that an enterprise in this nation would not thrive under these conditions. China is one of the few participating in global trade with Peru.
Despite the cost associated with doing business, they continue to come to Peru time and time again for their business ventures. “More than 80 Chinese companies run businesses in Peru, and the majority of them involving energy and mining resources. According to statistics from the Chinese embassy in Peru, China’s cumulative investment in the country reached $3 billion by the end of 2011”, (Qingfen, 2012). Consequently, the interest and investment in Peru has the ability to pay off in the long run if one is willing to pay the high rates of taxation, fees, and licensing. Not only does international trade increase cultural diversity and encourage a heterogeneous society, it also can help both nations reach their economic goals. “The economic domino effect of globalization have strengthened the economies of poor nations, decreased poverty levels, increased attention to environmental concerns, and led to more frequent intervention in national-level human rights abuses”, (Maceus, 2012). In conclusion, new entrants have a unique and difficult responsibility to encourage competitive competition to their advantage, remain sensitive to the political environment, and emphasize a marketing strategy unique to the culture and American business entering Peru will be successful.
- Catholicism and community. (2010). Retrieved from http://countrystudies.us/peru/45.htm
- Central Intelligence Agency, (2012). The world factbook. Retrieved from Center of Intelligence website: https://www.cia.gov/library/publications/the-world-factbook/geos/pe.html
- Countries and their cultures: Peru. (2013). Retrieved from http://www.everyculture.com/No-Sa/Peru.html
- De Maras, S. (2011). Doing deals in Peru. Retrieved from PcW website: http://www.pwc.com/es_pe/pe/doing-deals/assets/doing-deals-in-peru-2011.pdf
- Doing business in peru. (2009). Retrieved from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing Business in Peru.pdf
- Flores Benavides, R. (2010, September 28). Inside look at tax law when selling properties in peru. Peru This Week, Retrieved from http://archive.peruthisweek.com/blogs/business/1679
- Griffis, E. (2013). Doing business in lima. Retrieved from http://www.expatperu.com/doing-business-in-lima.php
- Koc, M. (2010, April). Overview and business etiquette. Retrieved from http://www.munich-business-school.de/intercultural/index.php/Peru_-_Overview_and_Business_Etiquette
- Lowe, F. (2012, January 5). Black incarceration rates remain high, but prison population drops overall.North Star News. Retrieved from http://www.thenorthstarnews.com/Story/Black-Incarceration-Rates-Remain-High-but-Overall-Prison-Population-Drops
- Maceus, N. (n.d.). Globalization and the United States: Positive and Negative Impacts on American Domestic Policies. In nickmaceus.hubpages.com. Retrieved April 6, 2012, from http://nickmaceus.hubpages.com/hub/Globalization-and-the-United-States
- Muir, J. (2011). Do chinese mining companies exploit more. Quarterly Americas, Retrieved from http://www.americasquarterly.org/do-chinese-mining-companies-exploit-more
- Peru tourism burea. (2012). Retrieved from http://www.visitperu.com/fiestas_ing/holyweek.html
- Quingfen, D. (2012, December 11). Companies still drawn to perus, despite obstacles. China Daily. Retrieved from http://www.chinadaily.com.cn/china/2012-12/11/content_16004279.htm
- Rushton, C. (2010). Business etiquette in peru. Retrieved from 1http://www.ehow.com/about_5279932_business-etiquette-peru.html
- World Bank, IFC. (2012). Impact evaluation of business license simplication in perus: An independent assessment of an international finance corporation-supported project. Retrieved from Independent Evaluation Group website: http://ieg.worldbankgroup.org/content/dam/ieg/pubs/bus_lic_peru.pdf
- U.S Department of State, U.S Diplomacy. (2004). Peru country reports on human rights practices. Retrieved from Diplomacy in Action website: http://www.state.gov/j/drl/rls/hrrpt/2003/27916.htm
- U.S Department of State, Department of Interior. (2011).Peru bureau of democracy, human rights, and labor. Retrieved from State website: http://www.state.gov/j/drl/rls/irf/2010_5/168227.htm