YEAR OF PRODUCTIVE DIVERSIFICATION AND

STRENGTHENING EDUCATION

INTERNATIONAL bUSINE
SS IN PIURA

COURSE
English

LEVEL
Pre-Intermediate
TEACHER
Calero Merino, Mariano
MEMBERS
Jimenez Diaz, Almendra
Yarleque Silva, Mary
Carmen

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.
2

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

I. CLASSICAL
THEORIES
1

THEORY OF
MERCANTILISM

Widely practiced during

the seventeenth and
eighteenth
centuries
saw trade as a zerosum game.

Suggests
that
the
world's wealth is fixed
and that a nation that
exports
more
and
import less will be
richer.
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I. CLASSICAL
THEORIES
2

THEORY OF ABSOLUTE
ADVANTAGE
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.
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I. CLASSICAL
THEORIES
3

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

II. MODERN
THEORIES
1

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

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

THEORY OF NATIONAL COMPETITIVE

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

INCOTERM
S

10

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:

12

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.

13

CLASSIFICATIO
N
I. Multimodal
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.

II. Maritime and

inland
waterways
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.
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.

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.
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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18

IMPORTS
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

19

IMPORTS
Switzerland, with US $ 194.9 million

20

IMPORTS
China, with US $ 148.3 million

21

IMPORTS
United States with US $ 129.7 million

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IMPORTS
Chile with US $ 46.5 million

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MAJOR SUPPLIERS COUNTRIES

AND MAIN IMPORTED PRODUCTS

Urea and
other
fertilizers
, timber

SOURCE:
SUNAT

24

EXPORT
EXPORT GROUP PRODUCT

SOURCE:
SUNAT
25

Non-Traditional products

Frozen
fish

Canned
fish

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Decreased
Ethanol
(-97.8
percent)

Scallops
(-32.9
percent)

Yarn
(-10.9
Percent)
Sales of
natural
phosphates
(-25.6

27

SOURCE:
SUNAT
28

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