International Business Environment Midterm
Evaluation of Potential for Import and Export Trade in Peru
Spring 2010
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Table of Contents
Introduction
The Peru of today is much different from when it was captured from the Incas by Spanish Conquistadors in 1533. In 1821, Peru declared its independence from Spain and after many years of military rule adopted a democratic leadership in 1980. The following years brought further economic instability and civilian unrest. In 1990 President Alberto Fujimori came into office and led a turn-around in the economy and helped to reduce the amount of guerrilla activity within the country. Fugimori was removed from office in 2000 and succeeded by Alejandro Toledo and yet another president, Alan Garcia Perez in 2006, who had served an earlier term as president from 1985 to 1990. In his second term as president, Alan Garcia has worked to improve social conditions, maintain fiscal responsibility, and brings about a better economic performance to the country of Peru and continues to operate as a democratic society today.
The country of Peru is the third largest country in South America and located on the western coast, bordering the South Pacific Ocean with Chile to its south and Ecuador to the north. Other countries that border Peru from the east are Colombia, Brazil, and Bolivia. Lima is the capital of Peru, and is centrally located from north to south, on the coastal side. Other major cities include Chiclayo located on the northern coast, Arequipa located to the south and Cusco located in the south but inland in the upper elevations of the Andes.
The population of Peru is estimated at 29.5 million as of July of 2009 with 71% of the population residing in urban areas. It is estimated that the population is growing at 1.2% with a median age of 26.1 years (CIA-World Fact Book). The topography of Peru extends in bands that run north and south beginning with the western coastal plain moving east...