International Business Student Declaration: I declare that the work submitted is my own

Module: International Business
Type: Individual Course-work
Semester: Third Term
Date: 2 of August 2019
Course Tutor: Louiza Gaysins
Class: International Business
Student number: PEL105650
Student First Name: Esthefany
Student Last Name: Cota Cespedes
Student Declaration: I declare that the work submitted is my own.
________________________________________
Lecturer’s Comments and Advice
________________________________________________________
________________________________________________________
________________________________________________________
1 st
Marker initials
_______
2 nd
Marker initials ________
Date _______ Date ________

Discuss the role and importance of international business for national economies. Give examples of your
country's economy (or any chosen country) and the international trade pattern (as per the current trends of
imports and exports).
With the development of international business many countries have considered essential the use of this
tool for the growth of their economy. According to Vijayasri (2013) in this modern world all economies
have become open however no country is completely self-sufficient but they only differ on their level of
imports and exports. This essay, however, is intended to discuss the role and importance of international
business for national economies wherever it contribute to their economy or not. It will firstly, defined
international business and then respectively focus on two main points, which are the economy in a
country, in this case will be Peru and the international trade pattern Peru use and how it works. Along
with the reasons against each point. I argue that although these two main points have a considerable
impact on the use of international business in order to empower the economy rate however, Peterson and
San (2015) believe that there are other factors that could affect the utility like culture or the government of
the country.
According to Eden, Dai and Li (2010) they define international business as a process of planning,
directing and controlling the organizations, which involve the trade of goods, technology, services or
capital in cross-border activities or functions outside its nation-state. International business as it is said
before, it helps the economy of a country, for example; in Peru their main exports and imports, according
to the data that comes from the United Nations Statistical Division (2017) are refined and crude
petroleum, gold and other minerals, in which the main destinations are China, United States, South Korea,
Brazil, Chile and Switzerland. Peru is only one country which improved thanks to the international trades,
but as this there are many other countries. As we can see in the example before, international business is
beneficial to national economies. According to Feldman, Hadjimichael and Lanahan (2015) national
economies in a long-term growth that relies on innovation, production and entrepreneurship, furthermore
there are other aspects that can be involved, an example could be the government of a country, Peru has
developing challenges, such as the high levels of poverty, informal economy, unemployment and a high
dependence on their minerals that they import and export making their value decrease. However, even
with all the flaws, they are in the 52nd place of largest export economy in the world (The Observatory of
Economic Complexity, 2017). According to International Friction and Cooperation in High-Technology
Development and Trade (1997) for a national economy growth they use economy strategies, like

influencing the volume and structure of the supply and demand, but as in every country in the world their
government consume from 10 to 30 percent of the GDP (Gross Domestic Products) and the transportation
is an additional cost that in some countries is kind of difficult to imagine how the influence of the
government is on the mobilization of goods. As this situation is inevitable there is only one strategy that
could minimize the cost and influence of the government on the transportation and it is the baseline
strategy in which the government aimed to spend and raise the funds so they could have a minimum
impact on private decisions. As we said before the government is an essential aspect of international
business, however there are also many strategies that could help a little bit in the situation, making a win
in both sizes. According to Adam Smith, economic strategies can work direct to the influence of the
transportation of the goods and the income that it might generate and it can be done by ensuring that the
markets work efficiently. In some cases those trades are made in different currencies were there might be
a profit if the currency of the country is lower, in Peru most of the trades are made in American Dollars,
which is like 3.50 soles, so if the price of the trade is higher Peru can be having a percentage of profit and
is only in the change of currency. According to Vijayasri (2013) there are some disadvantages on the
international trade, for example, the dependency on foreing nations, domestic job losses, the welfare
workers are ignored, social and cultural problems. In order to face the cross-trade challenges there must
be in consideration the points said before for a trade in which both size they win.
Now with the developments in technology and in the economy of every country, there are many trade
patterns that in some cases benefit the country in a long-term or short-term. In Peru, over the last decade it
has been one of the fastest growth in Latin America, by some natural problems (El Niño) the rate of
growth fell 2.5% and because of the corruption in the country and the involvement with the Odebrecht
scandal it took down several politicians of high level ( Government Digital Service UK, 2018). Peru trade
and economy is liberal, more than 92.2% of Peru trade is covered by the Free Trade Agreements (FATs),
this also include the one with the European Union that later will be affected by the Brexit in the following
years. According to Lebeau (2015), any investments that are made by a country is dependant on the
savements on the patterns of the country, which in the case of Peru the actual presidents, Vizcarra is trying
achieve, in addition to this, the criteria of the investments hold place when there is a foreing investment
and in order to attract more and more the government of the country needs to relax a little bit their
investing norms becoming transparent. Trade patterns in Peru have been completely free and liberal with
the agreements with other countries, however, according to Velazquez (2016) it seems that Peru have not
sufficiently utilized the agreements in full. As it is said before, Peru have trade with many countries
around the world, the main countries are China, UK, France, Germany, USA, Canada, Mexico and Brazil.