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Country Report: Peru
Tamaria Watkins
Trenecha Morgan
Key Indicators
Population (M): 31.8
Urban Population: 78.9 %
Population growth: 1.3 %
Capital: Lima
Official Language: Spanish 
Major exports: Copper ore, gold, refined petroleum, Zinc ore, and Refined copper
Major imports: Cars, petroleum
Historical and cultural characteristics
Peru has been a democracy since 1980. Peru was in the process of transforming to a Democracy in 2017 after the political and economic failure of the military government took place. The government began to crumble under president Fernando Belaunde Terry and Alan Garcia Perez, due to an economic crisis, hyperinflation and terrorism (Transformation Index). 
I. Political Transformation
Peru has a monopoly on the use of force, however, it is challenged in some areas. One of the main hinderances with the transformation of the country is violence. Violence has been an issue in Peru for quite some time. Peru is one of the main producers of an ingredient used to make cocaine, coca. Security and police forces have been unsuccessful in shutting down the crime, and it is mainly due to the drug mafia. In addition to drug trafficking, organized crime play a huge role in Peru. Illegal mining is one of the many crimes conducted in Peru. 
II. Rule of Law
Since Peru has a democracy government power is to be divided amongst the three branches: executive, legislative, and judicial, however, due to weak political system the division of powers is not balanced. Power seems to be the big issue; however, the major conflict lies between the executive and legislative branches. In addition, there is a concern that congress may seek to supplant the functions of the judicial branch. The judicial branch in Peru operates as an independent system. Judicial ratings are the lowest in the Peruvian government; the problems in the judiciary are due to corruption, inefficiency, limited resources, etc. (Transformation Index).
Economic Growth
The economy is expected to grow this year. The mining sector of business will likely endure many investments. Employment opportunities will grow as well (Focus Economics). 
-Outlook for marketers
-What stage of development is country in
-What is structure of competition in the market
Consumer Behavior 
Peruvian consumer behavior has changed over the years and technology has played a huge role in those changes. Consumers are more inclined to share their thoughts and feelings about products and services. Just like anywhere else in the world, if a consumer is not satisfied with a product or service because it is not what they expected, Peruvians will too share their negative thoughts about their experience. 
Quality is very important to Peruvians. In fact, quality is one of the main driers when deciding to purchase. Price and availability are the two most important factors in Peru. Saving money is not jus done in well-developed and matured countries, places like Peru are big on discounting and saving. Brand awareness gives exposure to consumers, but price is a factor that will drive the decision to purchase (Societe Generale).  
-What are the hot prospects for a foreign company entering Peru
-Possible risk for marketers
-Cultural pitfalls
Business Culture
· Punctuality is not a big deal when conducting meetings in Peru, it is quite common for Peruvians to show up late
· The time of wait for meetings is dependent on seniority
· Greet with a firm handshake and direct eye contact
· Important to address people by their respected title (doctor, lawyer, etc.)
· There is no strict structure for meetings in Peru therefore an interpreter is recommended to conduct meetings
· Hard selling is avoided
· Final decisions are left up to the highest-ranking person in the meeting
· Relationship-driven culture
· Conservative and formal business
Etiquette (Cultural Atlas. Etiquette. Web. 2019.)
· Peruvians take pride in appearance and presentation
· Remove hat and sunglasses when entering a church
· Putting feet on furniture is considered poor etiquette

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