...FREE TRADE AND ECONOMIC GROWTH An evaluation of the American – Peruvian Free Trade Agreement, 5 years after its implementation Adolfo Neira Economy (ECON6090) William Paterson University 10/24/14 Professor Dr. Taghi Ramin Contents ABSTRACT 3 INTRODUCTION 4 LITERATURE REVIEW 9 METHODOLOGY 11 FINDINGS AND DISCUSSION 13 CONCLUSION 17 REFERENCES 20 ANNEX OF FIGURES AND TABLES 22 Figure 1. Peru nominal and real GDP, 1994-2013 and Inflation Rate, 1994-2013 22 Figure 2. Peru Exports (FOB) and Imports (CIF). 1994-2013 22 Figure 3. Peru Trade Openness Index and Contribution of US trade to TOI. 23 Table 1. Trade evolution for Exports, Imports, and Trade Balance, Peru-USA 2009-2013. 23 Figure 4. Trade evolution for Exports, Imports, and Trade Balance, Peru-USA 2009-2013. 24 Figure 5. Peru-USA Trade Exports and Imports per capita. 2009-2013. 24 Figure 6. Peru-USA and Peru-World Net Trade and Balance Trade Comparison. 2009-2013. 25 Figure 7. Peru’s Foreign Direct Investment stock and flow (Equity Capital). 2003-2013. 25 ABSTRACT Peru has signed a Free Trade Agreement with United States on February 2009, this FTA with the US is a balanced and comprehensive agreement covering all aspects of bilateral economic relationship such as: trade in goods, investment promotion, procurement, border services, and protection of intellectual property. It also includes chapters on labor and environmental protection. Objectives for the Agreement are of two...
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...wine industry. Two-market entry strategy will be identified and recommended. The advantages and limitations of both strategies will also be discussed in this report. Peru is located in the west of South America, and has borders with Ecuador, Colombia, Brazil, Bolivia and Chile (peru.travel) Wine industry from Peru was brought from Spain after its conquest. (Ayala) 1. 2. Factor conditions 1. 2.1. Physical resources Peru soils are nearly level to steep. They are on drumlins and sloping to steep areas of glaciated uplands. Slope ranges from 0 to 35 percent. The soils formed in dense, loamy glacial till of Wisconsin age that is derived mainly from mica schist, granite, and phyllite. Peru soils are moderately well drained. Permeability is moderate in the solum and moderately slow or slow in the substratum. The climate is humid and cool temperate. Mean annual rainfall ranges from 30 to 50 inches and mean annual air temperature ranges from 40 to 47 degrees Fahrenheit. The frost-free season ranges from 90 to 160 days.(National Cooperative Soil Survey , 2013) The high relief and steep slopes of the streams emerging from the mountains to the east meant that it was relatively simple to divert water into canals for irrigation agriculture. (Park, 1983) Peru has a large amount of water resources, with 159 river basins. The Andes divide Peru into three natural drainage basins: Pacific basin, Atlantic basin and Lake Titicaca basin. (Farroñay, 2012) Land area (sq. km) in Peru was last measured...
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...ABC The Pacific Alliance 1 The Pacific Alliance – Deep integration for prosperity The Pacific Alliance is a mechanism for regional integration formed by Chile, Colombia, Mexico and Peru, in April 2011. It acquired legal and formal existence on 6 June 2012, with the signature of the Framework Agreement. The process seeks to create attractive markets among its member countries and enhance their competitiveness in the wider world. 2 Member Countries T h e Pa c i f i c A l l i a n c e Mexico Colombia Peru Chile 3 Finland United Kingdom Netherlands Germany France Switzerland Italy Canada Turkey People's Republic of China Japan Republic of Korea United States of America Honduras Guatemala El Salvador Dominican Republic Costa Rica Panama Spain Portugal Morocco Israel India Singapore Ecuador Australia Paraguay Uruguay New Zealand Member-Candidate countries The Pacific Alliance Observer Countries T h e Pa c i f i c A l l i a n c e Costa Rica Panama 4 Objectives of the Pacific Alliance: To build, through participation and consensus, an area of deep integration that will move progressively forward towards the free circulation of goods, services, capital and persons. To dynamize growth, development and competitiveness in the economies of the Parties, in order to achieve greater welfare, overcome socioeconomic disparities and secure social inclusion in their societies. To become a platform for political articulation, economic and commercial integration, and projection...
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...HISTORY The history of Peru spans several millennia. Peruvian territory was home to the Norte Chico civilization, one of the oldest in the world, and to the Inca Empire, the largest state in Pre-Columbian America. It was conquered by the Spanish Empire in the 16th century, which established a Viceroyalty with jurisdiction over most of its South American domains. Independence was declared in 1821 but consolidated only after the Battle of Ayacucho, three years later. GEOGRAPHY Peru is a country on the central western coast of South America. Peru covers 1,285,220 km² (496,193 sq mi). It neighbors Ecuador and Colombia to the north, Brazil to the east, Bolivia to the southeast, Chile to the south, and the Pacific Ocean to the west CLIMATE The combination of tropical latitude, various mountain ranges, topography variations and two ocean currents (Humboldt and El Niño) gives Peru a large diversity of climates. DEMOGRAPHY Peru is a multicultural and multiethnic country. Peruvian census does not contain information about ethnicity so only rough estimates are available. Its population can be composed of Amerindians: 45%, mestizos: 37%, European: 15%, and Asians, Afro-Peruvians, and others: 3%.[1]. Amerindians are found in the southern Andes, though a large portion are also to be found in the southern and central coast due to the massive internal labor migration from remote Andean regions to coastal cities,during the past four decades. While the Andes are the "heart" of the indigenous...
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...……………………………………………………………………. 9 PART 2 MARKET ENTRY STRATEGIES ……………………………..… 2.1 Joint Venture 10-11 2.2 Acquisition 12-13 RECOMMENDATIONS …………………………………………………………... 14 REFERENCES …………………………………………………………..……….. 15-17 WORD COUNT Part 1: 2310 Part 2: 939 Total: 3249 WORD COUNT Part 1: 2310 Part 2: 939 Total: 3249 INTRODUCTION Peru is a dynamic, fast-growing South American economy poised for success in international markets. Some of Peru’s flagship export products are coffee and asparagus, but in recent years, it is an emerging producer of New World wines. Peru’s wine market supply is around 45 million litres, an increase of almost 10 million litres from five years ago (USDA, 2014). Peruvian climate is ideal for cultivation of grapes with strong character, where majority of its vineyards are concentrated on the Central coast. The wine industry is Peru has promising prospects for a foreign business investment, due to growing domestic consumption and global demand for high-quality and affordable wines. ………... PORTER’S NATIONAL DIAMOND ANALYSIS ………... 1.1 Factor Conditions 1.1.1 Physical Resources Andean soils are relatively young and are subject to erosion by water and winds because of the land gradient. The soil composition is loose sandy loam with high salinity (FAO, 2006). The coastal region of Peru is desert, intersected by valleys flowing from the Andes down to the sea. Peru has a per capita availability of...
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...Peru’s economic competitiveness has been sustained by regulatory reforms and open-market policies. Macroeconomic and monetary management is relatively prudent, with a structural fiscal rule keeping the level of public debt among the lowest in the region. Nowadays the world lives the era of globalization, characterized by economy and markets expansion, media, and transportation. With it, a new competitive environment arises, requiring countries to open their economies in order to communicate them with these new markets. Peru, a country located in the western coast of South America, is not the exception. Though, it has significant challenges to face in its economic development. (voxeu.org) A country sharply divided in three geographic regions: In the North-west coastal areas contain primary oil deposits. Main traditional agricultural products including cotton, fish, and fruits grow along the Pacific coast. And most mineral resources, that involve approximately half of Peru's exports, come from mines in the Andes. However, despite this bunch of resources, Peruvian economy is essentially heterogeneous, and markets segmentation is extremely high. This can be attributed to major obstacles, differences and barriers in access to these resources companies need to grow their competitiveness. An easier way to classify productive specialization in Peru is by dividing its GDP into four large economic sectors: extractive or primary activities (agriculture, fisheries and mining); basic transformation...
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...final paper My final paper will focus in the Peruvian generic medicine market. The Peruvian market is dominated by the leading laboratories who set the prices and control the brands. Peruvian customers are used to follow doctors prescriptions strictly and believe that the use of generics is dangerous. This situation allows the laboratories to capture the market and set the prices (Peruvian medicines are more expensive than in the USA). The Peruvian health agency; "Ministerio de salud" signed a cooperation agreement with national association of pharmacies for them to distribute 83 of the most used generic medicines along with the brand medicines. They never kept up the agreement, and the pharmacies refuse to sell generic medicines. The generic drug industry covers the marketing and sale of medication containing the same active ingredients and dosages as brand-name drugs manufactured by the pharmaceutical industry. Drugs can be prescribed under their chemical name without specifying a particular pharmaceutical brand or company. A key benefit of generic drugs is that they usually cost a fraction of the price of brand-name drugs. In this context, our company (consulting) is planning to open a franchise of pharmacies that will exclusively provide generic medicines to the customers. We have two investors that have different approaches for the business. Final paper will analyze the legal environment in Peru and all aspects of liabilities, torts, ethics and legal implications of...
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...(10269890) Index Abstract……………………………………………………………………………………......3 Research Methodology..………………………………………………………………………3 Limitations ……………………………………………………………………………………3 About MANGO………………………………………………………………………………..3 Introduction (Peru an Emerging Economy)…………………………………………………4 Ease of Doing Business……………………………………………………………………….5 Market Attractiveness of Per (PESTEL Analysis)…………………………………………...6 o o o o o o Political analysis………………………………………………………………………………7 Economical Analysis…………………………………………………………………………..9 Socio-Cultural Analysis……………………………………………………………...............13 Technology Analysis………………………………………………………………................17 Environment Analysis………………………………………………………………………..18 Legal Analysis………………………………………………………………………………..19 Entry and Evaluation of MANGO in the Peru Market…………………………………….21 SWOT Analysis………………………………………………………………………………24 Ethics & Corporate Social Responsibilities…………………………………………………28 PESTEL Analysis on Peru Fashion Industry (MANGO)………………………………….28 CSR for Retail fashion Industries…………………………………………………………...29 Conclusion…………………………………………………………………………………...33 Bibliography…………………………………………………………………………………34 2|Page Saurabh Mallick (10269890) Abstract This report insights the PESTEL analysis done on the country Peru, in context to fashion retail brand MANGO. Research Methodology Every one of the sources utilized for examination are valid and trusted sources. The majority of the research is done by utilizing the DBS library assets and World...
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...research the Latin American market and find business opportunities for their roofing products in this specific region. Therefore, we began our study by analyzing all 20 countries in Latin America. At first, we narrowed our selection by evaluating political risks. Due to recent political turmoil in Venezuela and Argentina, we decided to eliminate these nations from our selection. At the same time, countries with high economic-trade dependency with either Venezuela or Argentina were removed from our consideration set. These nations were Uruguay, Paraguay, and Bolivia. After we identified the countries with the highest political risk, we conducted a macro economic analysis of the remaining nations. By doing this, we were able to estimate future economic performance between the selected countries and narrow the constricted consideration set. Moreover, the economic indicators used for this analysis were the following: foreign direct investment (helps predict investors’ confidence level), manufacturing export (positively correlated with commercial construction), Real GDP growth (overall representation of an economic growth), GDP per capita using purchasing power parity (representative indicator of consumer purchasing power), currency fluctuation (significant for trade credit), and corruption level (important for analyzing perceived levels of public sector corruption). Based on the macro economic analysis, the top three promising economies were Peru, Ecuador and Panama- all the...
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...Pacific nations for free trade and to establish a trilateral free trade agreement with China and South Korea. Negotiations in this landmark free trade pact are taking place now in Phnom Pehn following the ASEAN Summit. If or once it is formed the RCEP is likely to cover half of the world’s population and would be the largest regional trading arrangement in the world to date. The RCEP is a strategy aimed at maintaining regional growth by ensuring that markets of the participating countries remain open and competitive. It is estimated that Japan’s GDP will grow by 1.1 percent with a wide range of partnership frameworks: tariff reductions and intellectual property protection. Under RCEP, which is different from individual country to country rules, there is a unification of rules and simpler business transaction procedures. The potential free trade agreements between ASEAN and China, Japan, South Korea, India, Australia and New Zealand could eventually lead to the creation of an integrated market that spans 16 countries with a combined market population of more than 3 billion people and a combined GDP of about US$19.78 trillion based on 2011 figures. The barriers are the economic gap between the 16 potential members: GDP $67,000 - $804 and differences in economic activity. The US-led TPP which stands for Trans-Pacific Partnership, On November 12, 2011, the Leaders of the nine TPP countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam...
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...APPENDIX 2 SUSTAINABILITY IMPACT ASSESSMENT OF PROPOSED WTO NEGOTIATIONS: THE FISHERIES SECTOR COUNTRY CASE STUDY: PERU Draft – not for citation John Tilman May 2, 2006 1 Glossary ADEX BCRP CCA CPPS DDA DIGESA EEZ EU FAO FIUPAP FONCODES FONDEPES GATS GPS IATTC IMARPE INEI ISC ITP MT NAMA NRI OLDEPESCA PRODUCE PROMPEX SIA SNP SPS SUNAT TBT WTO Exporters Association Central Reserve Bank of Peru Causal chain analysis Permanent Commission for the South Pacific Doha Development Agenda Environmental Health Directorate Exclusive Economic Zone European Union Food & Agricultural Organisation Artisanal Fishermen’s Federation Cooperation & Development Fund National Fund for Fisheries Development General Agreement on Trade in Services Global Positioning System Inter-American Tropical Tuna Commission The Marine Institute Statistical & Information Institute Selective Consumption Tax Fisheries Technological Institute Metric Tonnes Non-agricultural Market Access Natural Resources Institute Latin America Organisation for Fisheries Ministry of Production – Fisheries Export Promotion Office Sustainability Impact Analysis National Fishing Society Sanitary and Phytosanitary Measures Superintendency of Tax Technical Barriers to Trade World Trade Organization 2 Table of Contents Page Glossary Executive summary 1. Introduction 1.1. Background 1.2. Coastal livelihoods and development 1.3. Objectives of the study 2 6 10 10 11 11 12 12 13 13 14 15 15 15 15 16 16 16 16 18 18 19...
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...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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...exporters from numerous countries that identified “Mutual interests in developing the Avocado consumption”. The main goal is to develop and extend the Avocado consumption in Europe, along with inspection on domestic markets of the members (plus other markets as well), where applications from one field can be learnt and applied in other. AMAP is a unique model with special inspiration: “Cooperation of competitors” from all over the world, with common understanding that it is much more beneficial “to act together on enlarging the cake than to fight on its slices”. This basic idea was firstly discussed at informal meeting of various exporters during the '4th World Avocado Congress' (Uruapan, Mexico 1999), where it was agreed to meet once a year and to modify numerous existing connections from being 'bi-lateral' to be 'multi-lateral'. Further many steps, for tightening the relationships, were taken in the past dozen years. Nowadays, there is permanent weekly data exchange. The group has twice a year meetings where many subjects are presented and discussed, like marketing, promotion, future supply programs, developments, new ideas etc'. AMAP is simple win-win cooperation's model, who operates without any administration, fee or levy, under a motto of “Free competition with free information". While considering the fluent information,...
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...equipment 2) First mobile phones 3) Involvement in GSM 3. Acquisitions 4. Logos b) Global Market Captured/Targeted By Nokia Corporation c) Peru i) Quick Facts ii) General Overview iii) Economy iv) Challenges v) Economic Indicators d) Entry Strategy For Nokia Corporation to Enter in Peru i) Political factors ii) Social Factors iii) Economical factors iv) Technological Factors v) Environmental Factors vi) Legal factors Nokia Corporation Introduction Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. It is the world's largest manufacturer of mobile telephones: its global device market share was about 33% in Q2 2010, down from 35% in Q2 2009 and unchanged from Q1 2010. Nokia's converged device market share was about 41% in Q2, unchanged from Q1 2010. Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and...
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...Running head: PERU AND CAPITAL DEVELOPMENT Peru and Capital Development Abstract During the 2006 election of Alan Garcia Perez, promised to improve the social condition and commanded a balance of the economic spending with an increase of social spending. With a macroeconomic performance that had increased the GDP growth and help to lower the poverty levels. Even though the economic crisis produced a strain on the financial burden of Peru at the time, the prices have begun to drop and Peruvians are proactively recovering their loses. The land is still being dominated by the elites and the higher class of mezitos. These governed entities remain in control of the structures and industries within the country. Peru and Capital Development In 1996, Republic of Peru was the world largest coca leaf producer, however as time has generated a smaller dip in the economic system, Peru is now the world’s second largest producer of coca leaf. While, Peru lags far behind Columbia; cultivation of coca in Peru declined to 36,000 hectares in 2007. With an estimated yearly rate of growth of 9.8% (U.S. Department of State), Peru continues to struggles to keep up through economic hardship and the rift of the trade. Republic of Peru is plagued with environmental issues concerning the deforestation due impart to illegal logging, overgrazing of the slopes of the costa and sierra leading to soil erosion, desertification, air pollution, water pollution. Most of the problems are due to the natural...
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