The Organisation Of Multinational Businesses And International Trade
Peru is a moderately business-orientated nation located on the western coast of South America. Its surrounding nations and most important trade partners are; Ecuador, Columbia, Brazil, Bolivia, and Chile. Overall it is a reasonably densely populated nation homing an average of 25 people per square kilometer however its capital city Lima, has an extremely dense population of up to 3000 people per square kilometer. With such a dense population in the city, it opens up many business opportunities.
In relation to Australia, Peru’s time zone is 15 hours behind. With such a different time zone, it can cause hiccups in the organization of multinational businesses and international trade. Working conditions are reasonable with workers receiving mostly fair treatment and the average yearly income of a working Peruvian citizen is around $84,000 USD.
Christianity is by far the most followed religion in Peru, being the chosen religion of 81% of the entire population. The 3 languages spoken in Peru are Aymara, Quechua, and Spanish which is the most commonly spoken of the 3 with 84% of the population speaking it.
Peruvian business meetings have a few similarities and differences with the way things are run in Australia. It is not uncommon at all for one member of the business to be late to the meeting. On arrival at the meeting, all associates will greet each other formally and by their given title. During a meeting, there is rarely a set agenda or chairperson but points of discussion are usually agreed on by all members of the meeting, and in most cases, it is not uncommon for Peruvians to agree on something during a meeting but not immediately sign the contract. This is mainly due to Peruvians’ tendency to avoid conflict and preserve one’s reputation.
In Peru, when attending a business meaning it is not required at the first meeting to give any physical gifts but to buy your prospect a meal for either lunch or dinner to cement the relationship and to start off on a good note. If a gift is to be given, it will generally be done so at the end of a meeting or gathering. The best gifts to give are small meaningful gifts that are related to either the business or home state, for example, a computer company may receive gifts of USBs or a mouse with a small engraved logo of the business.
Austrade is a support agency for businesses, education institutions, tourism operators, governments, and citizens to help them develop an international platform for their organizations. Their support services come in the form of helping Australian businesses: build international connections resulting in a commercial outcome, giving businesses assistance in managing time, cost, and risks that may affect customers, giving businesses financial assistance for exporting through programs like the ‘Export Market Development Grant Scene and this is just to name a few.
The Export Council of Australia (ECA) helps Australian businesses in getting into the international business scene. The ECA promotes the Australian industry in international markets by helping Australian businesses in developing international business skills, building Australian business capacities, conducting international market research
The Australian Chamber of Commerce and industry is Australia’s biggest and most representative business network. The organization’s members are; state and territory chambers of commerce, national industry associations, and a council of business leaders from individual enterprises. Together these parties make up The Australian Chamber of Commerce and industry who strive to assist and represent any Australian businesses of all shapes and sizes, across all sectors of the economy, and from every corner of our country.
All of these organizations can be utilized in creating or advancing any businesses in the international industry. With support agencies such as Austrade, ECA, and the CCIQ, any new or existing businesses that wish to move into the international business scene can receive assistance in nearly all aspects that are necessary for getting into the international business market.
In the past, Peru has had some extremely controversial human rights issues in the following areas; disability rights, Refugee and asylum seeker rights, Sexual and gender orientated rights, women’s and girl’s rights, police abuse, and Freedom of expression. However, in the past 19 years, an attempt at making improvements have been made and more legislations have been put in place in an effort to completely eliminate these issues. Even with the now in place legislations regarding the mentioned issues, breaches still occur and these issues do still exist. Security and police forces are still going against legislation and sometimes the use of excessive force occurs when responding to the occasional violent protest over large development projects. Gender-based violence is still existing, and there are many recorded cases to prove this. In 2017, 368 women were victims of “femicides” which means the killing of a woman in certain contexts, including domestic violence and gender-based discrimination. Any areas that I originally mentioned, but left out when discussing still existing issues, have no recorded cases and therefore I am unable to make any judgment as to whether they still exist.
The current traditional culture developed among the Peruvian society creates a direct challenge for young, aspiring businesswomen seeking to do business and establish a serious role in the Peruvian business scene. Although this acts as a barrier, current legislation has been placed in an attempt to reduce these issues.
Peru is the 52nd largest export economy in the world and the 81st most complex economy according to the Economic Complexity Index (ECI). In 2017, Peru exported a total of $44.8B and imported $38B, resulting in a positive trade balance of $6.84B. In 2017 the GDP of Peru was $211B and its GDP per capita was $13.4k.
Peru’s most exported goods are Copper Ore ($12B), Gold($7.13B), Refined Petroleum ($2.49B), Zinc Ore ($2.1B), and Refined Copper ($1.77B), using the 1992 revision of the HS (Harmonized System) classification. Its most imported goods consist of: Refined Petroleum ($2.82B), Cars ($1.73B), Broadcasting Equipment ($1.44B), Crude Petroleum ($962M) and Delivery Trucks ($792M).