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Political and Economic Structures of the Business Environment | Peru

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London Metropolitan University

   

Introduction to the Business Environment (EC4F05)

   

Added on  2020-03-01

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The political and economic structures of Peru's business environment are discussed in the document below. Peru is a South American country on the continent's western coast. It has a diverse culture, history, and culture. The country's abundance of natural resources and minerals, including as copper, gold, and steel, aids mining, refining, and extraction. The article also covers subjects such as Political and Economic Systems, System Nature, Banking systems, and Legal System Differences in Peru and How They Affect Business.

Political and Economic Structures of the Business Environment | Peru

   

London Metropolitan University

   

Introduction to the Business Environment (EC4F05)

   Added on 2020-03-01

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Political and Economic Structures of the Business Environment of Peru Culture of Peru and Implications for businessPeru is a South American Country located on the west coast of South America. It has arich culture, history and diversity. The abundance of natural resources and minerals ranging fromcopper, gold and steel helps the country to develop mining, refining and extraction. In recenttimes a number of different investors and business houses have shown their interest to invest inthe country because of the ever increasing economic resources of the country (Harrison 2013).Another main source of income for the country is it being one of the major tourist destinationcenters of South America. The presence of a number of historical and ancient sites like MachuPichu is one of the main reasons behind the footfall of a large number of tourists of SouthAmerica. The government of Peru has opened up the markets for the foreign investors to analyzeand interpret the cultural dimensions of the country and also to present the opportunities for thecompanies and industries to develop and implement their marketing strategies (Shehu andMahmood 2014). Political and Economic systems of the countryAccording to the reports published by U.S Central Intelligence Agency the country hasseen an increase in the economic growth rate of 6.4% round the year. Most of the economicgrowth is a result of the exports from minerals and the investment by a lot many private investors(Cardoza et al. 2016). Exported Minerals accounted for around $47billionImports accounted for around $ 41 billion
Political and Economic Structures of the Business Environment | Peru_1
The import and export balance is imbalanced but it has failed to hurt the cause ofeconomic growthNature of Business Environment in PeruTax year starts from 1st January and ends in 31st December of the same yearIt is mandatory for the companies to present a balance sheetAccounts Certification have been made compulsory in 1974VAT standard is 18% (Cámara and Tuesta 2015)There is a consumption tax in the countryStrategic HRM Policies are the most latest development of the countryBanking System in PeruThe banking system in Peru is profitable and well capitalizedThere are private multiple banks, financial service companies, non bank financialinstitutions and most notably two state owned institutions named Banco de laNacion and Banco Agropecuario (Harrison 2013)17 of the private banks enjoys the highest amount of depositsFour of the banks namely Scotiabank Peru, Interbank, Banco de credito del Peruand BBVA intercontinental enjoys about 85% of the deposit rate.Difference of Legal system in Peru and how it affects businessThe Government of Peru has established a judiciary branch that looks after thelaws and regulations of the country
Political and Economic Structures of the Business Environment | Peru_2

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