“YEAR OF PRODUCTIVE DIVERSIFICATION AND STRENGTHENING EDUCATION”

“INTERNATIONAL bUSINESS IN PIURA”

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COURSE English

LEVELPre-Intermediate

TEACHERCalero Merino, Mariano

MEMBERSJimenez Diaz, Almendra

Yarleque Silva, Mary Carmen

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The International trade is one of the main drivers of growth in the world economy and one of the pillars of the current globalization process. Theories of international trade help us to understand why countries trade and what are the benefits associated with trade. However, the global trade analysis shows that there are significant differences in participation in different regions and countries, which explains the different degrees of integration into the global economy.

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DEFINITION

The international trade is therefore defined as the exchange of economic goods that takes place between individuals and / or companies in two or more countries, so that merchandise outputs a country, exports are made, and goods receipt who come from other countries, imports.

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THEORIES OF INTERNATIONAL

TRADE

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Widely practiced during the seventeenth and eighteenth centuries saw trade as a zero-sum game.

Suggests that the world's wealth is fixed and that a nation that exports more and import less will be richer.

1 THEORY OF MERCANTILISM

I. CLASSICAL THEORIES

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Suggests that free trade with a nation gains by specializing in economic activities which has an absolute advantage.

In other words, international trade is not a zero sum game (that is to say, where one wins, the other loses) as suggested by commercialism. It is a win-win.

2 THEORY OF ABSOLUTE ADVANTAGE

I. CLASSICAL THEORIES

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Theory that focuses on the (not absolute) relative advantage in an economic activity which enjoys a nation compared to other nations.

3 THEORY OF COMPARATIVE ADVANTAGE

I. CLASSICAL THEORIES

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First dynamic theory that considers changes in trade patterns over time, focusing on the life cycles of product.

1 THEORIES OF PRODUCT LIFE CYCLE

II. MODERN THEORIES

Theory suggests that strategic government intervention in certain industries can improve your chances for international success.

2 THEORY OF STRATEGIC TRADE

This theory focuses on why you certain. Industries (but not other) within a nation are internationally competitive.

3 THEORY OF NATIONAL COMPETITIVE ADVANTAGE OF INDUSTRIES (THEORY DIAMOND)

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INCOTERMS

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Definition:

The word INCOTERMS, International Trade Terms, stands for International Chamber of Commerce Trade Terms and express the set of rules applied to the interpretation of international trade terms, giving unambiguous, commonly accepted within the voluntary discretion of the use.

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Below is a list of the main changes introduced by the new INCOTERMS 2010 is shown below:

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PURPOSE:

The purpose of Incoterms is to establish a uniform set of international rules for the interpretation of the terms used in international trade, in order to avoid possible uncertainties arising from such terms in different countries.

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CLASSIFICATION

I. Multimodal II. Maritime and inland waterways

Suitable for any mode of transportation, or if using more than one mode (including cases in which the vessel for carrying out part of the transport of goods) is used.

When the delivery point is located on a port, and the place where the goods to the buyer (importer) also transported.

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I. MULTIMODAL

EXW (Ex Works)The exporter makes the delivery of the goods when available to the importer to the exporter is established or at an agreed place, not cleared for export.

FCA (Free Carrier)The exporter will deliver the goods to the carrier or person indicated by the importer, at the agreed location, loading the goods on the means of transport provided by the importer.

CIP (Carriage and Insurance Paid to)

The exporter will deliver the goods to the carrier who hired at the agreed place between exporter and importer. The carrier will carry the goods from this place/point of delivery to the place/destination point.

CPT (Carriage Paid To)The exporter will deliver the goods to the carrier who hired in place agreed by the exporter and importer.

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I. MULTIMODAL

DAT (Delivered At Terminal)After unloading of the goods, the delivery of the same occurs with its making available to the importer, the designated terminal at the port or place of destination term.

DAP (Delivered At Place)It assumes that the exporter delivers the goods once it is made available to the importer at the named place, before downloading.

DDP (Delivered Duty Paid)The exporter delivers the goods making it available to the importer, after completing customs import procedures (in the country of destination), ready to be unloaded from the means of transport used, in place, point of destination.

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II. MARITIME AND INLAND WATERWAYS

CFR (Cost and Freight) It means that, like FOB, the exporter delivers the goods on board the vessel designated in accordance with the practices of the port.

CIF (Cost, Insurance and Freight)The exporter delivers the goods on board the vessel designated. It is also possible for the exporter to obtain the goods already delivered under these conditions for transport to destination.

FAS (Free Alongside Ship)The exporter shall deliver the goods by placing it alongside the vessel nominated by importer, at the load point set by such importer, within the port of shipment.

FOB (Free On Board) The exporter will deliver the goods on board the vessel nominated by the importer at the port of shipment.

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• In the period from January to November 2013, main countries of origin imports by customs of Paita and Talara were:

• Ecuador, with $ 203.3 million

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IMPORTS

• Switzerland, with US $ 194.9 million

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IMPORTS

• China, with US $ 148.3 million

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IMPORTS

• United States with US $ 129.7 million

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IMPORTS

• Chile with US $ 46.5 million

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IMPORTS

MAJOR SUPPLIERS COUNTRIES AND MAIN IMPORTED PRODUCTS

Urea and other fertilizers, timber

SOURCE: SUNAT

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EXPORT GROUP PRODUCT

SOURCE: SUNAT

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EXPORT

Non-Traditional products

Frozen fish

Canned fish 26

Decreased…

Scallops (-32.9

percent)

Yarn (-10.9

Percent)

Ethanol (-97.8

percent)

Sales of natural

phosphates (-25.6

percent), 27

SOURCE: SUNAT

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