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Conclusion and Recommendations

Background Information
Peru's Competitive Advantage
Working in Peru
Peru's Economy
Meet the Culture
The Peruvian Markets
Risk Management in Peru
Social Issues and Concerns in Peru
Conclusion and Recommendations

In all honesty, it is not currently a good time for Canadians to invest in Peru. The economy and government in Peru is extremely unstable and it is not worth the risk to invest money in the country. The country's currency is also very unpredictable and if one were to invest in the Peruvian market, even with a successful investment, all may still be lost due to the lackluster currency. There also are not many goods and services that are of high demand from within the country.

In the capital city, Lima, one third of all capable people are currently unemployed. This unemployment rate has lead to many problems, one of which is financial difficulty which in turn has lead to a high crime rate of youth. Other problems that a Canadian company might have include the regular practice of child labour in Peruvian business. The common use of children for work is a way of life in third-world countries, so unless North American companies are willing to condone such behaviour, they might have difficulty "fitting in" with a business environment which is run so much different than home. Peru's human rights record has also been relatively poor in several areas, including protection of civil and political rights. This further demonstrates Peru's contrasting way of life to Canadians, and could be very problematic for an expanding North American business whose roots value human rights.

Peru is still a developing nation and their industrial and commercial companies are not very advanced in technology. Peru is trying to obtain more recognition by other nations and organizations by joining these well-known groups and pacts around the world. However, joining these organizations has not necessarily helped them in further developing their country. Peru does not export or import many products, but rather they act independently and produce all of the necessities that they need. Because of this, shares in a company rarely fluctuate, and remain stable. The country's imports and exports are mainly natural resources, but still only exports about $9 billion per year.

In current times, with high risk of war terrorist acts, and other potentially delicate global phenomena occurring, countries that would be a smart investment would be those with excellent homeland security and also who are uninvolved in any form of terror. Recently, terrorists have been arrested and interrogated in Peru for hijacking airplanes and plotting terrorist attacks. In the event of war, Peru could become a potential target since they have inadequate security, their economy would be in greater turmoil than it currently is in.

Since Peru is a developing nation, it is likely that a few decades from now (or when they are more developed) they would be a great county to invest in. For example, their GDP's growth rate was 4% as of 2003, which made a significant increase since 2001 when it was only about 0.3%. Although the statistics do not show that investments in Peru would be stable and reliable, they do illustrate that if Peru keeps growing the way it has, that they will be a great country to invest in for the near future.


Copyright 2004 Peru-4-U