Peru Case Study

This paper will analyze and examine Peru’s political, legal, economic, and cultural system and risk involved. Furthermore, I will discuss the challenges and opportunities of doing business in Peru. Lastly, I will market a product to enter Peru and consider the opportunities for this product to succeed. 
 Peru 's political system is a constitutional republic with a multi-party system. The government consists of three branches; executive, legislative, and judicial. In the executive branch there is a president and two vice presidents. The president is the head of state and government. A president is elected by popular vote for a five-year term in addition to eligibility for nonconsecutive terms (IBP, Inc. 13). Additionally, the president appoints

Thus, Peruvians display close proxemics. Communication is not usually direct, and people may have to read between the lines. An example of paralanguage is silence. “Silence could express embarrassment or otherwise communicate a negative message.” ("The Global Business Culture Guide - Peru"). "The Global Business Culture Guide - Peru” mentions that it is best to use an indirect approach when first dealing with Peruvians. However, once a strong relationship has been established business negotiations can be direct. Another example of paralanguage is Peruvians usually speak softly. Unless when making a point they will speak loudly. Examples of kinetics behavior used by Peruvians are lightly tapping on the head, which means “I am thinking’ ("The Global Business Culture Guide - Peru”). Also, eye contact is necessary to help build trust and show honesty. Peruvians use non-task sounding, which is “general, polite conversation and informal communication before meetings.” (Deresky). Another important factor is formal attire and business lunches or dinners. Especially, since first impressions have a significant impact on how a business will perceive you. The decision-making process can be slow and take time. Peruvians rely on feelings and experiences rather than facts. Also, Peruvians do not like change and rarely take

Power distance is defined the way in which power is distributed and how the less powerful accept it. Hofstede states that Peru’s high power distance can be traced back to the strutted and centralized Inca empire, colonial government, or the church. However, people with less power see superiors or government officials difficult to approach and do not trust them ("Geert Hofstede”). Also, individuals with higher power see others as a lower class and ask for respect. Next, individualism Peru scored a sixteen. Individualism is seeking the best for one’s self or family only. Peru focuses on collectivism which emphasizes the success of the group instead of the individual. Additionally, the focus is not just on one’s self or family, but also extended family and friends. Masculinity scored a forty-two. Therefore, Peru is more of a feminine society. Hofstede reports “A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life.”. Then, Peru scored an eighty-seven for uncertainty avoidance. Uncertainty avoidance explains if a community likes an unstructured or structured environment Next, long-term orientation with a score of twenty-five. Long term orientation involves virtues directed toward the future, one’s values consist of persistence, perseverance, and being able to adapt. Finally, indulgence with a score of forty-six. “Indulgence