DOING BUSINESS IN PERU

Doing Business in Peru

Doing Business in Peru

Introduction

Located at the crossroads of the Pacific Ocean, the Andean Highlands and the Amazon Basin, Peru is a nation whose geography is just as diverse as its population. Peru's unique population is an ethnic melting pot of Spanish heritage mixed with native Amerindian roots. Peruvians are known for their friendliness and hospitality and will make special efforts to make foreigners feel welcomed. Although Peru has endured periods of civil unrest and economic difficulty in recent years, current reforms are making Peru a more stable environment for business endeavours. Having an awareness and appreciation of Peru's unique cultural nuances is an integral part to ensuring successful business ventures in Peru.

Peruvian Culture — Key Concepts and Values

Peru is the third biggest country of South America and covers 1,285,215 square kilometers. Peru has three natural regions: the coast, highlands and jungle. The Peruvian population was 28.2 million. Around 75.9% of the population lives in urban areas and 24.1% in rural areas. The administrative divisions of the country include 24 Departments and one Constitutional Province, Callao. Each Department consists of provinces, which total 180 (Callao included), and these are divided into districts, which total 1,747. The capital city is Lima. The Peruvian State is organized administratively into the Executive Power, composed by the President of the Republic, who is the Chief of State and is elected by direct voting for a five year term. Legislative Power is centred in a unicameral Congress. One hundred and twenty congressmen are directly elected. Power over the administration of justice is held by the Judiciary. Its highest body is the National Counsel of Magistrates. The official language is Castilian, but in many regions of the country the Quechua language is in use (a dialect inherited from the Inca culture), Aymara is a language of a part of highlands. The currency is the New Sun (Wilson, F. 2000).

Communications

The Ministry of Transportation and Communications is the entity in charge of regulating the transportation services, roads, as well as communications nationwide. It looks for rational land use planning in relation to the areas of resources, production, markets and populated areas by regulating, promoting, executing and supervising the transportation and communications infrastructure. A number of mass media, such as the press (newspaper and magazines), radio, (digital, satellite, cable) television, books, etc., are used to maintain people informed about political, economic and social issues. People can also communicate with each other by phones, cell phones, internet (e-mail, chat, blogs, etc.). Peru is a democratic country where the freedom of the press, speech and opinion are honored, and the law and people's rights are respected (Valderrama Adriansén, C. 2007).

Language, Currency and Exchange Rate

The official language in Peru is the Spanish. Since 1991, the legal currency in Peru is the Nuevo Sol (S/.) The Central Reserve Bank of Peru is the entity in charge of maintaining the monetary stability in the country and operates autonomously. In fact, it intervenes in the foreign exchange ...