The problem has been identified in the lack of productivity and therefore lack of competitiveness of the productive chains with export potential of the central jungle within the framework of the free trade agreements. The solution to this problem is considered to come through the application of modern management tools such as benchmarking, kaizen or continuous improvement, business collaboration contracts, just in time, e-commerce and others.
If the productive chains with export potential located in the central jungle do not reach high levels of productivity; they cannot impose themselves, that is to say, be competitive, against other Peruvian and world companies that also participate in the framework of free trade agreements.
It has been determined that the productive chains with export potential of the central jungle do not have an adequate relationship between the quantity and quality of goods and services produced and the quantity of resources used; which is configured as a lack of productivity, and therefore a lack of competitiveness that they must have especially to sell their products within the framework of free trade agreements. Foreign markets, such as the United States of America, Canada, Thailand, Chile; Because they are countries with which they have free trade agreements, they are very demanding in the products they buy, therefore all these elements must be weighed to enter into the best conditions.
The productive chains with export potential of the central jungle do not evaluate the performance of the planting areas, the machines and implements they use, the work teams they form; Nor do they evaluate the workers they hire; all of which is configured as lack of productivity; which in fact affects the competitiveness they must have within the framework of free trade agreements.
Productive chains with export potential in the central jungle do not understand or apply that productivity in terms of workers is synonymous with performance; if the workers do not yield there is no productivity; therefore if the worker they hire does not have knowledge or experience, then they will not perform and will not help productivity at all. Also, if you are given a quantity of resources (supplies) in a given period of time and you do not obtain the maximum number of products required; then it does not contribute to productivity and affects competitiveness within the framework of free trade agreements.
Productivity is the relationship between outputs and inputs. This relationship has not been working between the productive chains with export potential of the central jungle. Entries are represented by labor, materials, machinery and equipment, energy and business capital in general; instead the outputs are the products and / or services that are obtained. Productive chains with export potential in the central jungle have been obtaining their products, but not in the quantity and quality required. There are cost overruns in various orders. In good account the entrances are very expensive compared to the exits; which is configured in lack of productivity.
If there is no productivity, then there is no competitiveness; and therefore, the opportunity represented by free trade agreements is not seized.
A productive chain with export potential from the central jungle is the set of Economic Agents grouped within a framework of trust to participate directly in production, then in the transformation and transfer to the market with quality and opportunity of the same product. agricultural. In addition to the aforementioned productivity problems, the geographical location of the chain, the resources it uses, the products it consumes and obtains at the end of the process, the internal and external market towards which it is oriented, the productive potential have been identified. they represent, the agribusiness that seeks to strengthen, lack of truly representative producer organizations, leading production chains in certain segments, etc.
Problems in the process of production chains with export potential from the central jungle have been identified in a previous study. This begins in the poor organization, direction and control, which causes a drop in production that configures problems in the marketing of the goods produced by the chain, inadequate crop management, poor harvests, poor production in quantity and quality, disarticulation. with the market, lack of added value and other elements. The productive chains have problems of efficiency, economy and effectiveness, that is to say in the productivity that they should have to attend to the internal market and currently to compete with the external market.
The productive chains with export potential of the central jungle, also face deficiencies in terms of levels of competitiveness between chains in the same place, between chains in different places, this is configured because they have always only looked at the premises, that is, they did not develop with a regional, national and less international sense. The lack of competitiveness means that the productive chains of a province, department or region cannot face equally with powerful productive chains of the countries with which Peru has signed free trade agreements.
SYSTEMATIZATION OF THE PROBLEM
MAIN PROBLEM:
How will the management tools of the productive chains with export potential of the central jungle facilitate productivity and therefore competitiveness within the framework of free trade agreements?
SECONDARY PROBLEMS:
- How the implementation of management tools in the productive chains with export potential of the central jungle, facilitate the efficiency in the framework of the free trade agreements? How the evaluation of the management tools of the productive chains with export potential of the central jungle facilitates effectiveness under free trade agreements?
THEORETICAL AND CONCEPTUAL FRAMEWORK
THEORETICAL FRAMEWORK
PRODUCTION CHAINS MANAGEMENT TOOLS WITH POTENTIAL EXPORTERS FROM THE CENTRAL JUNGLE.
MANAGEMENT TOOLS:
Interpreting Chiavenato (2004), a management tool can be conceptualized as those elements that the administration must use to better manage production chains, especially in a context of economic globalization and competitiveness that presents us with the so-called free trade agreements. Management is defined as the process of creating, designing and maintaining an environment in which people work or work in groups and effectively achieve their mission. Administrative tools facilitate productivity, then it facilitates competitiveness. The productive chains are managed with tools, which are designed, implemented, evaluated and fed back; Then all this facilitates productivity and as a consequence we enter competitiveness.
According to Rubio (2006), current management concepts are the result of a process started at the dawn of humanity and which has been evolving and acquiring its own profiles through different periods and management tools that it has implemented. Management tools induce effectiveness to human efforts. They help to obtain better personnel, equipment, materials, money and human relations. It stays ahead of changing conditions and provides foresight and creativity. The improvement is its constant watchword. The success of a social organism depends, directly and immediately, on the management tools and only through them, on the material, human elements, etc. that that body has. The management tools are applied to all types of company, production chain, sector, etc.The success of a production chain depends directly and immediately on its good business management. Proper management increases productivity. Efficient management techniques promote and guide development. In the large production chains of the administration it is indisputable and essential. In small and medium production chains, the only possibility to compete is by applying new business management tools. The New Modern Administration Tools that can be applied to production chains can be diverse, depending on the purpose to which you want to reach. These tools can be: Benchmarking, Total Quality, Empowerment, Downsizing, Coaching, Balanced scorecard, Intellectual Capital, ABC costing, Entrepreneurship, E-commerce; Just in time; Kanban; Franchising, Emotional intelligence,Kaisen, Corporate Image, The seven «s» of Mckinsey, The 5 «S» of Kaizen (see kaizen), Mentoring, Negotiation, New «employability», Outplacement, Outsourcing, Reengineering, Teamwork, Competitiveness, Organizational development.
According to Terry (2003), management is closely related to the changing nature of the business environment, especially technological changes. Management must always focus on people, whatever the size of the company. Management must be aware of changes that may occur in the company, using all the tools to respond to such changes, for the benefit of its customers and society in general.
It constitutes elements of management of the productive chains, efficiency, which is the ability to minimize the amount of resources used to achieve the objectives or purposes of the organization, that is, to do things correctly. It is a concept that refers to »input-products». Efficiency is also a management tool, which is the ability to determine the appropriate objectives, that is, when the goals that have been defined are achieved. Productivity, which is the result (product) and input relationship within a period with due consideration of quality, is also an element. Another element is the objectives. Management is always focused on achieving ends or results. Sometimes non-business executives claim that the goal of business managers is simple:make profits or benefits. For many business companies, an important goal is the long-term increase in the value of their common stock. In a very real sense, in all types of organizations, whether for profit or not, the logical and publicly desirable goal of managers must be to make a surplus: they must establish an environment in which people can achieve group goals with less time, money, materials and personal dissatisfaction, or in which they can achieve as much as possible a desired goal with the available resources.the logical and publicly desirable goal of managers must be to make a surplus: they must establish an environment in which people can achieve group goals with the least amount of time, money, materials, and personal dissatisfaction, or in which they can achieve as much as possible a desired goal with available resources.the logical and publicly desirable goal of managers must be to make a surplus: they must establish an environment in which people can achieve group goals with the least amount of time, money, materials, and personal dissatisfaction, or in which they can achieve as much as possible a desired goal with available resources.
Interpreting Koontz (1999), effective administration can only be achieved with management tools and includes the planning of activities and resources, the proper organization of the processes and procedures of institutional activities, the tactical and strategic management of resources for the proposed purposes and institutional evaluation and control. To the extent that this process is properly conducted, executed and evaluated, it will be oriented towards the fulfillment of the institutional mission.
Analyzing Stoner (2000), the management tools will allow planning, organizing, directing and controlling the use of resources and work activities in order to achieve the goals, objectives and mission of the organization in an efficient and effective way. Process of planning, organizing, directing and controlling: That is, carrying out a set of activities or functions sequentially, which includes: Planning: It basically consists of choosing and setting the organization's missions and objectives. Then, determine the policies, projects, programs, procedures, methods, budgets, norms and strategies necessary to achieve them, also including decision-making by having to choose between various future courses of action. In a nutshell,it is deciding in advance what you want to achieve in the future and how you are going to achieve it.
Organization: It consists of determining what tasks need to be done, who does them, how they are grouped together, who is accountable to whom and where decisions are made. Direction: It is the fact of influencing individuals so that they contribute to the fulfillment of organizational and group goals; therefore, it has to do fundamentally with the interpersonal aspect of the administration. Control: Consists of measuring and correcting individual and organizational performance to ensure that the facts adhere to the plans. It involves measuring performance based on goals and plans, detecting deviations from the standards and contributing to their correction. Use of resources: Refers to the use of the different types of resources available to the organization: human, financial, material and information.Work activities: They are the set of operations or tasks that are carried out in the organization and that, like resources, are essential for achieving the established objectives. Achievement of objectives or goals of the organization: The entire process of planning, organizing, directing and controlling the use of resources and the carrying out of activities are not carried out randomly, but with the purpose of achieving the objectives or goals of the organization.but with the purpose of achieving the objectives or goals of the organization.but with the purpose of achieving the objectives or goals of the organization.
Efficiency and effectiveness: In essence, effectiveness is the achievement of objectives and efficiency is the achievement of objectives with the use of the minimum amount of resources.
Terry (2003), indicates that management tools will allow effective administration, which is the reason that is being challenged by forces that are developed by a changing environment. Important factors among these forces are the generation of enormous amounts of knowledge, the development of an almost incredible technology, the great alterations in the general environment in which management operates and the deluge of changing human values. The four stages of corporate management are: planning, organization, execution and control.
Comparing Andrade (1999) and Terry (2003), it is determined that the management tool called planning is applied to clarify, expand and determine the objectives and courses of action to be taken; for forecasting; establish conditions and assumptions under which the work must be done; select and indicate the areas for achieving the objectives; establish a plan of achievement; establish achievement policies, procedures, standards and methods; anticipate possible future problems; modify plans in light of control results
According to Evans (2000) and Johnson and Scholes (1999), it can be determined that the tool called organization is applied to distribute the work among the group and to establish and recognize the necessary relationships and authority; subdivide work into operational tasks; arrange group operational tasks in operational positions; gather operational positions between related and administrable units; define the requirements of the job; select and place the human element in a suitable position; delegate due authority to each member of corporate management; provide facilities and other resources to staff; review the organization in light of the control results.
For Steiner (1998) and Stoner (2000), the management tools that come together in the execution are carried out with the practical, active and dynamic participation of all those involved in the decision or the managerial act; lead and challenge others to do the best they can; guides subordinates to comply with operating rules; developing subordinates to perform full potentials; highlight creativity to discover new or better ways to manage and perform work; praise and repress with justice; rewarding work well done with recognition and payment; review performance in light of control results.
For Koontz & O`Donnell (1990) and Robins (2000), the management tool called activity control, is applied to compare the results with the plans in general; evaluate the results against the norms of planning and institutional execution; devise effective means for measuring operations; make the measuring means known; transfer detailed data to show comparisons and variations; suggest corrective actions, if necessary; inform the responsible members of the interpretations; adjust the plan in light of the control results. In practice, management tools can be diverse but they are intertwined and interrelated; the execution of a function does not stop entirely before the next one starts.The sequence must be tailored to the specific objective or the particular project. Typically a manager is committed to many goals and can meet each one at different stages of the process.
Understanding Robins (2000), it can be said that SWOT is a modern tool for the analysis of situations experienced by production chains. It is a tool that serves to analyze the effectiveness situation of an organization. Its main function is to detect the relationships between the most important variables in order to design adequate strategies, based on the analysis of the internal and external environment that is inherent to each organization. Within each of the environments (external and internal) the main variables that affect it are analyzed; In the external environment we find the threats that are all the negative variables that directly or indirectly affect the organization and also the opportunities that the positive external variables indicate to our organization.Within the internal environment we find the strengths that benefit the organization and weaknesses, those factors that undermine the potential of the company. The identification of the strengths, threats, weaknesses and opportunities in a common activity of the institutions, what is often ignored, is that the combination of these factors can be the design of different strategies or strategic decisions. It is useful to consider that the starting point of this model is threats, since in many cases companies proceed to strategic planning as a result of the perception of crises, problems or threats.Weaknesses and opportunities in a common activity of the institutions, what is often ignored is that the combination of these factors may lie in the design of different strategies or strategic decisions. It is useful to consider that the starting point of this model is threats, since in many cases companies proceed to strategic planning as a result of the perception of crises, problems or threats.Weaknesses and opportunities in a common activity of the institutions, what is often ignored is that the combination of these factors may lie in the design of different strategies or strategic decisions. It is useful to consider that the starting point of this model is threats, since in many cases companies proceed to strategic planning as a result of the perception of crises, problems or threats.
PRODUCTIVE CHAINS:
According to Durufle and others from the French Ministry of Cooperation, referred by AGROBANCO, "the production chain is the set of economic agents that participate directly in production, then in transformation and in the transfer to the market of realization of the same agricultural product ”.
According to Montigaud, referred by AGROBANCO, "The production chain is the set of activities closely interrelated, vertically linked by their belonging to the same product (or similar products) and whose purpose is to satisfy the consumer"
According to Chevalier and Toledano, referred by AGROBANCO, »The chain is an articulated set of integrated economic activities: integration resulting from articulations in terms of markets, technology and capital»
According to MINAG, "The production chain is a set of economic agents interrelated by the market from the provision of inputs, production, transformation and marketing to the final consumer."
According to AGROBANCO, Most of the definitions are made to reflect the complexity implicit in agricultural activity from a global point of view. Therefore, if it is analyzed in greater detail, it can be seen that in all the definitions, the process begins with production and ends with consumption, the same that can be done by national consumers or from other countries if the product is from export, or processing companies if the product is an input. AGROBANCO is a financial institution specialized in agriculture, whose objective is to grant credits to producers. Consequently, it is already a member of the production chain. However, in the support loans, their participation concludes with the recovery of credit,that is to say when the harvest has been sold and the producer has the necessary resources for the return of the capital and the interest generated. Therefore, the definition of the production chain from the point of view of AGROBANCO must reflect this reality: credit begins with planting and ends with harvest, that is, it accompanies the vegetative cycle. The foregoing does not exclude that AGROBANCO can intervene in the distribution and marketing phase that even reaches the final consumer. However, this will be done with other types of loans such as marketing loans or others that may develop in the future. The definition of AGROBANCO takes into account that during the vegetative cycle of crops and breeding,economic agents with specific roles (which we will call actors) have an active participation, and they develop a set of tasks typical of the agricultural activity (activities). Consequently, the production chain is defined as: "the set of actors and activities that intervene interdependently, in the different phases of the production of a crop, located within the scope of a Regional Office". The actors are producers, input suppliers, financial agents, including AGROBANCO, the operator that provides technical assistance and the buyer of the crop. Activities include site preparation, planting, cultural activities, and harvesting.Consequently, the production chain is defined as: "the set of actors and activities that intervene interdependently, in the different phases of the production of a crop, located within the scope of a Regional Office". The actors are producers, input suppliers, financial agents, including AGROBANCO, the operator that provides technical assistance and the buyer of the crop. Activities include site preparation, planting, cultural activities, and harvesting.Consequently, the production chain is defined as: "the set of actors and activities that intervene interdependently, in the different phases of the production of a crop, located within the scope of a Regional Office". The actors are producers, input suppliers, financial agents, including AGROBANCO, the operator that provides technical assistance and the buyer of the crop. Activities include site preparation, planting, cultural activities, and harvesting.the operator providing technical assistance and the buyer of the crop. Activities include site preparation, planting, cultural activities, and harvesting.the operator providing technical assistance and the buyer of the crop. Activities include site preparation, planting, cultural activities, and harvesting.
Importance of production chains:
From the point of view of agrarian development, the importance of the concept of the productive chain lies in the fact that it is a powerful mechanism to transform the current agricultural situation. In fact, one of the biggest problems of our current productive structure is that it is atomized, individualized and without planning, which has generated inequality, deficiency and the consequent poverty. The production chains aim to build a new decentralized productive structure, in the design of which all the actors involved in the production process actively participate.
Financing through production chains:
The main advantages of granting financing through the productive chains are:
- It is an instrument for changing the country's agrarian reality, since one of the main problems in agriculture is the fragmentation and dispersion of producers, facts that make credit more expensive, if it is delivered individually. It helps to make agricultural activity profitable., because producers have greater bargaining power to obtain better prices on inputs, as well as on the sale of their production, taking advantage of the economies of scale generated by their organization. It creates the conditions for the participation of the other components of the chain in the financing of crops, consequently assuming a greater commitment to the results thereof. The organization of producers for financing purposes is a starting point for changing attitudes and values,which are necessary to undertake larger actions, such as those of intervening directly in post-harvest actions, in order to improve their income. It generates a favorable critical mass to undertake Technical Assistance actions, training, etc. that would not be viable if the producers were isolated. Reduces credit risk, since it largely guarantees the recovery of credit. It transforms agricultural producers into protagonists of their own development, displacing the idea that agricultural solutions must always come from the State.that would not be viable if the producers were isolated. Reduces credit risk, since it largely guarantees the recovery of credit. It transforms agricultural producers into protagonists of their own development, displacing the idea that agricultural solutions must always come from the State.that would not be viable if the producers were isolated. Reduces credit risk, since it largely guarantees the recovery of credit. It transforms agricultural producers into protagonists of their own development, displacing the idea that agricultural solutions must always come from the State.
Productive chains sequence:
PRODUCTIVITY AND COMPETITIVENESS IN THE FRAMEWORK OF FREE TRADE TREATIES.
PRODUCTIVITY
Analyzing Johnson and Scholes (1999), productivity can be defined as the relationship between the quantity of goods and services produced and the quantity of resources used. In production chains, productivity is used to evaluate the performance of land, machines, work equipment and workers. Productivity in terms of agricultural workers is synonymous with performance. In a systematic approach we say that something or someone is productive with a quantity of resources (Inputs) in a given period of time, the maximum number of products is obtained. Productivity in machines and equipment is given as part of its technical characteristics. Not so with human resources or workers. Influencing factors must be considered. In addition to the ratio of quantity produced by resources used,Other very important aspects come into play in productivity, such as: Quality, which is the speed at which goods and services are produced especially per unit of labor or work. Productivity = Output / Inputs. Inputs: Labor, Raw material, Machinery, Energy, Capital. Outputs: Products. Productivity is the same input with bigger output; smaller inlet same outlet; increase output decrease input; increase output faster than input; decrease the output less than the input.Productivity is the same input with bigger output; smaller inlet same outlet; increase output decrease input; increase output faster than input; decrease the output less than the input.Productivity is the same input with bigger output; smaller inlet same outlet; increase output decrease input; increase output faster than input; decrease the output less than the input.
According to Terry (2003), productivity is a determining factor of competitiveness and should be understood as the improvement of productive capacity, and of the general environment, seeking efficiency in the Pareto sense, that is, improving the product, effectiveness, wages etc., without deteriorating some other indicator. In Latin America, before the economic opening began, productivity was growing at a slow pace, and this phenomenon was one of the main arguments for the liberalization of both international trade and the foreign investment regime. The average productivity of Latin American companies is only a third of that of companies in developed countries.Closing this productivity gap requires a great effort towards technological modernization of both equipment and process technologies, as well as the forms of organization of work and production, which are also extremely backward. However, such modernization is viewed with suspicion since it is feared that the counterpart of such an increase in productivity is a decrease in employment.
Interpreting Garay (1998) competitiveness is the degree to which production chains can be produced under free market conditions, goods and services that satisfy the test of international markets, and simultaneously increase the real income of its associates. Competitiveness is based on superior productivity behavior. The old theory of international trade that assumed competition based on static natural advantages by factor endowment has already been overcome, economies must develop dynamic competitive advantages through scientific and technological development strategies that allow them to insert themselves into market fractions that enable international exchange or deal with low-cost products that threaten to flood their own spaces,displacing domestic production and employment. To improve productivity and competitiveness, it is necessary to think of management tools where knowledge and its multiple applications are central elements for the economic and social development of contemporary societies.
According to Evans (2000), productivity is defined as the relationship between inputs and outputs, while efficiency represents the cost per unit of output. For example: The productivity measure would be given by the relationship between the number of plantations made per hour / worker. Productivity would be measured from the plantation cost, which would be integrated not only by the time dedicated by the agricultural worker, but also by all the other inputs involved in that particular event, such as seeds, soil conditions, prevailing time, warehouse support, food support, etc. In the productive chains that measure their productivity, the most frequently used formula is: Productivity: Number of units produced / Worker inputs.Productivity can also be measured based on the commercial value of the products: Productivity: Net sales of the company / Wages paid. Important elements to consider to increase the productivity of the company are human capital as the investment made by the organization to train and educate its members and the instructor of the working population, which are the knowledge and skills that are directly related to the results of the job.Important elements to consider to increase the productivity of the company are human capital as the investment made by the organization to train and educate its members and the instructor of the working population, which are the knowledge and skills that are directly related to the results of the job.Important elements to consider to increase the productivity of the company are human capital as the investment made by the organization to train and educate its members and the instructor of the working population, which are the knowledge and skills that are directly related to the results of the job.
According to Robins (2000), in order to measure the progress of productivity, the PRODUCTIVITY INDEX (P) is generally used, as a point of comparison: P = 100 * (Observed Productivity) / (Productivity Standard). The observed productivity is the productivity measured during a defined period (day, week. Month, year) in a known system (plot, farm, production chain). The productivity standard is the base or previous productivity that serves as a reference. But the most important thing is to define the trend through the use of productivity rates over time in our chains, make the necessary corrections in order to increase efficiency and be more profitable. Internal and external factors that affect productivity: Internal factors: Land, Inputs (seeds), Human resources, Energy,Machines and equipment, Others. External Factors: Availability of inputs or seeds, Skilled labor, State policies regarding taxes and tariffs, Existing infrastructure, Availability of capital and interests, Adjustment measures applied.
COMPETITIVENESS:
According to Robbins (2000) competitiveness is the direct consequence of productivity and this in turn is a consequence of economy, efficiency and effectiveness. As the resources used by a production chain reach high levels of productivity, goods will be obtained in the quantity and quality required and with minimal costs. Competitiveness is a process, it does not appear by chance. There are companies that spend their whole lives looking to be competitive and never succeed. In a context such as that of free trade agreements where many companies and from several countries participate, being competitive is a great challenge, but nothing impossible to achieve. It all depends on the planning, organization, direction, coordination and control of resources, processes, operations, activities and functions.
According to Porter (1996), we understand competitiveness as the ability of a production chain to become productive and systematically maintain comparative advantages that allow it to reach, sustain and improve a certain competitive position in the socioeconomic environment. Competitiveness has an impact on the way of planning and developing any initiative of the productive chains, which is obviously causing an evolution in the model. The comparative advantage of a production chain would lie in its ability, resources, knowledge and attributes, etc., which this entity has, the same that its competitors lack or that they have to a lesser extent that makes it possible to obtain some higher yields than those.The use of these concepts supposes a continuous orientation towards the environment and a strategic attitude on the part of the large, medium and small productive chains, in those of recent creation or in the mature ones and in general in any kind of organization. On the other hand, the concept of competitiveness makes us think of the idea of excellence, that is, with characteristics of efficiency and effectiveness of the organization. Competitiveness is not the product of chance nor does it arise spontaneously; It is created and achieved through a long process of learning and negotiation by representative collective groups that configure the dynamics of organizational behavior, such as shareholders, managers, employees, creditors, clients, by competition and the market, and finally, the government and society in general.
According to Evans (2000), an organization, whatever the activity it carries out, if it wishes to maintain an adequate level of competitiveness in the long term, must use formal analysis and decision procedures sooner or later, framed within the framework of the "strategic planning". The function of this process is to systematize and coordinate all the efforts of the units that make up the organization aimed at maximizing overall efficiency. To better explain such efficiency, consider levels of competitiveness, internal competitiveness, and external competitiveness. Internal competitiveness refers to the organizational capacity to achieve the maximum performance from the available resources, such as personnel, capital, materials, ideas, etc., and the transformation processes.When talking about internal competitiveness comes the idea that the company must compete against itself, expressing its continuous effort to improve. External competitiveness is oriented to the elaboration of the achievements of the organization in the context of the market, or the sector to which it belongs. As the reference system or model is foreign to the company, it must consider exogenous variables, such as the degree of innovation, the dynamism of the industry, economic stability, to estimate its long-term competitiveness. The company, once it has reached a level of external competitiveness, must be ready to maintain its future competitiveness, based on generating new ideas and products and seeking new market opportunitieswith expression of his continuous effort of improvement. External competitiveness is oriented to the elaboration of the achievements of the organization in the context of the market, or the sector to which it belongs. As the reference system or model is foreign to the company, it must consider exogenous variables, such as the degree of innovation, the dynamism of the industry, economic stability, to estimate its long-term competitiveness. The company, once it has reached a level of external competitiveness, must be ready to maintain its future competitiveness, based on generating new ideas and products and seeking new market opportunitieswith expression of his continuous effort of improvement. External competitiveness is oriented to the elaboration of the achievements of the organization in the context of the market, or the sector to which it belongs. As the reference system or model is foreign to the company, it must consider exogenous variables, such as the degree of innovation, the dynamism of the industry, economic stability, to estimate its long-term competitiveness. The company, once it has reached a level of external competitiveness, must be ready to maintain its future competitiveness, based on generating new ideas and products and seeking new market opportunitiesAs the reference system or model is foreign to the company, it must consider exogenous variables, such as the degree of innovation, the dynamism of the industry, economic stability, to estimate its long-term competitiveness. The company, once it has reached a level of external competitiveness, must be ready to maintain its future competitiveness, based on generating new ideas and products and seeking new market opportunitiesAs the reference system or model is foreign to the company, it must consider exogenous variables, such as the degree of innovation, the dynamism of the industry, economic stability, to estimate its long-term competitiveness. The company, once it has reached a level of external competitiveness, must be ready to maintain its future competitiveness, based on generating new ideas and products and seeking new market opportunities
FREE TRADE AGREEMENTS
A free trade agreement (FTA) is an agreement between two or more countries that establishes not only the progressive elimination of tariffs and tariff barriers, but goes beyond that, dealing with issues such as investment, intellectual property rights, competition policies, labor and environmental legislation, among others. It is not within the stages of economic integration, because it goes beyond a free trade area in terms of issues, but it does not necessarily constitute a customs union. In this way, it can be considered as a parallel process, with a common objective: commercial opening. Our country has several Free Trade Agreements and Treaties for some time ago and others that are projected to be carried out in the short, medium and long term.These agreements and Treaties affect various aspects of the national economy, therefore it is necessary to understand the magnitude of said incidence to take the forecasts, in order to turn those threats into great opportunities. In each of these events, important negotiations are carried out that involve various situations.
Andean Community of Nations:
The Andean Community or Andean Community of Nations (CAN) is a regional economic and political organization with an international legal entity created by the Cartagena Agreement on May 26, 1969. It is based in Lima, Peru. It is made up of Bolivia, Colombia, Ecuador, and Peru, along with the organs and institutions of the Andean Integration System (SAI). Before 1996, it was known as the Andean Pact or Andean Group. Venezuela was a member until 2006 and its process of disengagement could apparently be reversed during 2007. Chile was originally a member between 1969-1976, but withdrew during the Augusto Pinochet military regime due to incompatibilities between that country's economic policy and policies. of CAN integration.Upon returning to democracy in 1990, talks began immediately for Chile to rejoin CAN as a partner (the same status that CAN has with Mercosur), which took shape on September 20, 2006. Located in South America The four Andean countries group together 120 million inhabitants in an area of 4,710,000 square kilometers, whose Gross Domestic Product amounted in 2006 to 280 billion dollars. The crisis in the Andean Community was accentuated due to the intention of the United States to negotiate bilateral Free Trade Agreements (FTAs) with each country. This situation led to a dispute between the members of the Community, who held divergent opinions on how to negotiate free trade agreements or FTAs with other countries or economic blocs.Venezuela and Bolivia proposed that negotiations with regional blocks or large countries should preferably be done as a block, such as the Andean Community, with the aim of promoting regional development and integration, as well as to protect and strengthen regional regulations. The other three member countries considered that the negotiation of bilateral FTAs with the United States did not harm integration but could be complementary to it, in addition to the fact that they saw it difficult to finalize a negotiation as a block before 2007 due to the political and economic differences of the countries region of. The Colombian government, for example, repeatedly expressed its concern about the expiration in late 2006 of the tariff preferences that the United States had granted to Ecuador, Peru,Colombia and Bolivia through the so-called «ATPDEA», without there being many possibilities of achieving its extension in time.
The bilateral FTAs that the United States began to negotiate also opposed the position of the European Union, which conditioned an FTA with the Andean countries to the fact that it was made from regional block to regional block and that the Andean Community demonstrated that it had reached an advanced level of integration.
Although a common position was not achieved, the Andean Community as a whole expressly authorized Peru, Ecuador and Colombia to negotiate FTAs with the United States. According to Maria Cristina Iglesias, Minister of Light Industries and Commerce of Venezuela, the FTAs handed over to the United States the guardianship of the CAN, which requires that the regional group immediately deregulate the market, thus imports from the United States made by Colombia would invade the Venezuelan market. Venezuela's withdrawal would protect the national industry from this subsidized competition.
Free Trade Agreement: Peru-MERCOSUR:
Peru and the Southern Common Market, Mercosur, signed a free trade agreement aimed at strengthening regional integration. Brazil is a full member of Mercosur, along with Argentina, Paraguay and Uruguay. Those countries also signed the agreement that grants Peru duty-free access to a variety of items from each of those nations. The agreement transforms Peru into an associate member of Mercosur, like Bolivia and Chile. Mercosur represents a consumer market of 236 million people and a combined Gross Domestic Product. This agreement has established the application of exceptional safeguards in the event that Argentina and Brazil increase their agricultural exports to Peru, while Uruguay and Paraguay will be governed by general safeguards. In practice,This constitutes a protection mechanism for local producers. According to what has been signed, a free trade agreement has been given for 15 years with Argentina and Brazil, and 13 years with Uruguay and Paraguay. In this period, a total of six thousand Mercosur products must enter Peru without paying tariffs. The free trade agreement with Mercosur will be effective as of November 1, 2003, although in practice this agreement has been in force since January 2004.The free trade agreement with Mercosur will be effective as of November 1, 2003, although in practice this agreement has been in force since January 2004.The free trade agreement with Mercosur will be effective as of November 1, 2003, although in practice this agreement has been in force since January 2004.
Peru and Its Participation in the Asia-Pacific Economic Cooperation (Apec)
APEC (Asia-Pacific Economic Cooperation, in Spanish Asia-Pacific Economic Cooperation) is a multilateral forum created in 1989, which deals with issues related to trade, economic coordination and cooperation among its members. As a mechanism for economic cooperation and agreement, it is oriented to the promotion and facilitation of trade, investment, economic and technical cooperation, and regional economic development of the countries and territories of the Pacific Ocean basin. The sum of the Gross National Product of the 21 economies that make up APEC is equivalent to 56 percent of world production, while together they represent 46 percent of global trade. APEC does not have a formal treaty, its decisions are made by consensus and it works based on non-binding statements.It has a General Secretariat, based in Singapore, which is responsible for coordinating technical and consulting support. Peru is a member of APEC. Every year one of the member countries hosts the APEC annual meeting. The 2008 summit will be held in Peru.
Peru-Thailand Free Trade Agreement
The Peru-Thailand Free Trade Agreement is a trade agreement signed on November 8, 2005 in Bangkok, Thailand by Peru's Foreign Minister Oscar Maúrtua and Thai Prime Minister Thaksin Shinawatra. Peru intends with this treaty to have a gateway to trade in Asia. This treaty was signed during the APEC Summit. Peru became the first Latin American country to sign a Free Trade Agreement with Thailand. The signing of the same, led to Peru being close to an FTA with Singapore, China and Japan. According to the Peruvian presidency, this treaty is projected to generate an additional $ 500 million and 300,000 jobs. The FTA covers 75% of Peruvian products, with the exception of sensitive products such as sugar, rice, chicken and cement;which can enter free of tariffs.
Peru-Chile Free Trade Agreement
The Peru - Chile Free Trade Agreement is a trade agreement signed on August 22, 2006 in Lima, Peru, being the representative of Chile, its Minister of Foreign Affairs Alejandro Foxley. This Agreement replaces the text, annexes and protocols of Economic Complementation Agreement No. 38(registered in ALADI as AAP.CE No. 38), which had been signed on June 22, 1998 and entered into force on July 1, 1998. The agreement is a great advance in relations between the two countries, weakened during the governments Alejandro Toledo in Peru and Ricardo Lagos in Chile. In July 2006, new Presidents Alan García and Michelle Bachelet agreed to boost their economic relations with the signing of a trade agreement. The Treaty would enter into force when the Chilean National Congress ratifies it.
Peru-US Free Trade Agreement.
Peru, like other countries in the Andean region (Colombia and Ecuador) has negotiated, since May 2004, a Peru-United States Trade Promotion Agreement, better known as the Free Trade Agreement (FTA) with the United States of America (USA). This FTA replaces the Andean Trade Promotion and Drug Eradication Law (ATPDEA), which was issued in October 2002, and is valid until December 2007. This is why the Peruvian state saw itself in the need to reach the signing of a Trade Agreement as soon as possible given the export benefits that the aforementioned Law has brought to the country. This Peru-United States Free Trade Agreement is a binding trade agreement whose objectives are to eliminate obstacles to trade,consolidate access to goods and services and favor the attraction of private investment. It incorporates, in addition to commercial issues, economic, institutional, intellectual property, labor and environmental issues, public contracts, services, competition policies and dispute resolution, among others. It was signed on December 8, 2005 in Washington DC, USA. It has been ratified by the Congresses of Peru and the United States. TheIt has been ratified by the Congresses of Peru and the United States. TheIt has been ratified by the Congresses of Peru and the United States. TheTopics contained in the Peru-United States Trade Promotion Agreement: Access to textile markets; Access to agricultural markets; Sanitary and phytosanitary measures; Customs Administration; Rules of origin; Financial services; Distribution contracts; Telecommunications; Electronic Commerce; Investment; Intellectual property; Competition; State purchases; Technical barriers; Safeguards; Dispute resolution; Transparency; Institutional affairs; Laboral things; Environmental issues; Commercial strengthening.
Sensitive issues in agriculture: Offensive: Access to the North American market. Defensive: Treatment of internal aid; Validity of the Price Range; Tax relief deadlines; Agricultural.
The fears of the agricultural sector: Agricultural subsidies: According to MINCETUR, only two (2) of the seven (7) subsidized imported products come mainly from the United States: cotton: 73% and Wheat: 61%; while: 65% rice (Uruguay), 35% sugar (Bolivia), 75% dairy (Bolivia) 30% meat (Argentina) and 75% yellow corn (Argentina).
Future Free Trade Agreements:
Free trade agreement Peru Mexico.
It is a commercial agreement on which the respective governments of Mexico and Peru have an interest to sign in the future. Although at the moment it is known by that name, what is currently being negotiated by the Peruvian Minister Mercedes Aráoz is the expansion of Economic Complementation Agreement (ACE) No. 8 to cover issues of reducing tariffs on agricultural products., protection of investments and intellectual property rights, fundamentally. The agreement began to be negotiated during the governments of Alberto Fujimori for Peru and Ernesto Zedillo for Mexico in 1996, ending in 2000 as Economic Complementation Agreement (ACE) No. 8. To date (08.30.2007), the Mexican government has stated his interest in a future FTA, but he has not responded to the Peruvian request to expand the areas to be negotiated. Likewise, some Peruvian analysts, and politicians, fear that in the negotiation of the expansion of the ACE and a FTA it may affect the recognition of Pisco as a designation of Peruvian origin, since recently Mexico maintained that Pisco could be Peruvian or Chilean.
Peru-China Free Trade Agreement
The Chinese economy maintains the highest sustained growth in the world in the last 15 years with an average rate of 9.9%. China has become a great potential market for exports of all kinds of products. Due to its location, Peru can become the gateway for China to the South American market. According to information in the Chinese official newspaper, a Free Trade Agreement between Peru and China could be signed in November 2008, when the summit of the Asia Pacific Economic Cooperation Forum (APEC) is held in Peru. China is the second commercial partner of Peru, after the United States, being the second destination of Peruvian exports. In 2006, trade between Peru-China reached US $ 3,920 million, 35.8% higher than in 2005. Of which, US $ 2.910 million correspond to Peruvian exports and US $ 1,010 million to imports from China. Among the main products that we export to China we have: Fish meal, powder and pellets: US $ 595 million; Copper, zinc, molybdenum, lead and their concentrates: US $ 1006 million; Canned and prepared molluscs: US $ 20 million; and, Crude oil oils: US $ 18 million. The products that have the potential to be exported to the Chinese market: Agricultural Products: Grape, Mango, Citrus, Purple Corn, Anthocyanin Purple Corn, Giant Cuzco Corn, Roasted Peanuts, Beans, Nuts, Fresh Fruits, Maca, etc.; Miner: Copper, Iron, Zinc, Molybdenum, Lead; Fishing: Frozen products (giant squid, hake, eel, horse mackerel, locos, ribbon fish, scallops). Dried fish products (shark fins, sea cucumbers, etc); Construction: Marble and Traventine; Forest: Wood for floors and other forest products; Textile: Alpaca and wool top, Cotton yarns. The products we import from China:.The products that currently have the most demand in China are: Home appliances; Machines for data processing; Motorcycles; Machinery parts and accessories; Telecommunication apparatus; Memory Units; Textiles; Car and truck tires; and, Camcorders. Investment opportunities can be developed:Petrochemical sector: Chinese investors have expressed interest in participating in the exploration and exploitation of hydrocarbons in Peru. Motorcycles and household appliances: manufacturing companies are interested in developing their operations centers in Peru to supply the Latin American market. Forest Resources: Forest resources in the Amazon rainforest constitute another interesting sector to exploit to supply flooring wood to the burgeoning Chinese construction industry.
Free trade agreement with the European Union
Since November 2006 formal negotiations began for the signing of the Free Trade Agreement (FTA) between the Andean Community (CAN) and the European Union. One of the main conclusions of the CAN-European Union Joint Meeting, which was held in Brussels in 2006, was precisely the establishment of an Ad Hoc commission, whose task was to assess the situation of Andean integration in the coming months. The European Union is not interested in starting a process of trade negotiation bilaterally, but in blocks or groups of countries. The signals received from the Europeans are extremely favorable because there is a will to move forward on the block-by-block negotiation path and it is a process that must take place in 2007. Various pending issues are being discussedThese include the difficulties that some of the Peruvian products have in entering the European Union market. There are calls for the restrictions on fishmeal to be lifted. With respect to the Generalized System of Preferences (SPG), the advantages contained in this promoting scheme of the European Union will be expanded with the establishment of the SPG Plus that would come into effect approximately in April of this year. Peru qualifies to continue being a beneficiary of this system, however, there will be a transition period but without potholes because there is no threat to Peruvian products. There has also been a request to expand access to the European market for tangerines and a similar treatment is being requested for citrus. On the other hand,Carrying out a sector study on the effects of the FTA with the United States in the workplace may be a complementary effort. It should be noted that the Ministry of Labor and Employment Promotion announced that two new studies will soon be launched on the labor impact of the FTA with the United States in the agricultural and textile sectors. The Ministry of Foreign Trade and Tourism has carried out large macro studies on the effects of the FTA. In the labor field, it is considered that up to 130 thousand jobs can be generated.The Ministry of Foreign Trade and Tourism has carried out large macro studies on the effects of the FTA. In the labor field, it is considered that up to 130 thousand jobs can be generated.The Ministry of Foreign Trade and Tourism has carried out large macro studies on the effects of the FTA. In the labor field, it is considered that up to 130 thousand jobs can be generated.
Free trade agreements and economic growth
Studies carried out by renowned specialists show that the mere fact of liberalizing trade with the United States will have positive effects on growth and job creation in all economic sectors of Peru. The study "Evaluation of the impact of the FTA with the US", prepared by Eduardo Morón, economist at the Research Center of the Universidad del Pacífico in March 2005, establishes that there would be an increase of up to 4.59% in GDP. It is important to note that these results do not consider the potential effect of a significant reduction in country risk, which reduces external indebtedness, and therefore has a positive effect on consumption and output.
Free trade agreements and job creation
The General Office of Economic Studies of the Ministry of Foreign Trade and Tourism (MINCETUR) estimates that, just as a consequence of the signing of the FTA with the United States, the number of jobs in the export sector would increase by 123 thousand, which would add to the around 1,200,000 jobs currently linked directly and indirectly to the export sector. However, estimates of new job creation may be substantially higher when the effect of investments is incorporated, which may involve not only the expansion of current industries but the appearance of new ones. This perspective becomes even more optimistic if it is taken into account that the FTA also includes aspects such as customs facilitation, investments,services and others that will improve the environment for the development of new businesses. Employment will increase with the FTA as it will make permanent and expand the benefits of ATPDEA for Peruvian products, which will be decisive in maintaining a virtuous and stable economic environment. Thus, the study "Sectoral and Regional Impacts of the Law on Tariff Preferences and Drug Eradication - ATPDEA", carried out by Roberto Abusada, Sara Taboada and Jorge F. Chávez in 2004, concludes that the employment associated with exports under the benefits of the ATPDEA employed 194.1 thousand people directly and 550 thousand people indirectly in 2003. According to the real increase in exports given in 2004, it can be estimated that these magnitudes increase positively.Probably the employment linked to all Peruvian exports to the United States - that is, whether or not they are under the ATPDEA - easily exceeds one million people and with NAFTA it could be around a million and a quarter.
Free trade and consumer agreements:
Just as exports are positive, imports are also positive. In effect, the gradual entry of US goods free of tariffs, or entry taxes to the country, will directly benefit consumers, who will have a greater variety of products at their disposal, at competitive prices and with international quality standards. In addition, the national industry will be able to acquire inputs, machinery and equipment that Peru does not produce at lower prices, which will contribute to its modernization and to the reduction of costs and prices. Similarly, as a result of increased competition in the market, services will also tend to improve, especially those that are part of the FTA negotiations, such as telecommunications and financial services.
Free trade agreements and agricultural sector:
The United States market is the main importer of agricultural products in the world. The high level of income of its population, its ethnic diversity and the demographic changes that are projected in the coming years constitute great potential for agricultural exports. Likewise, the diversity of climates and ecological floors that Peru has, the counter season, the greenhouse effect of our coast and the availability of land for agricultural development offer us the best conditions to replicate success stories such as the export of asparagus and paprika, in which we are the world leaders. Today, only the first 10 agro-export products generate 50,000 jobs and continue to grow at full speed. But we also have hundreds of products with the potential to be exported.An FTA is not only to export what we already sell to you, but to sell new products that also generate employment. According to information from the National Statistics Institute, in 2004 we were the first country in the world in agro-export growth and now we export 67 new agricultural products, such as beans, cocoa beans, custard apple, lemon, lentils, beans and fresh roses. With an FTA we can maintain this momentum and ensure permanent growth. Of the 2,800,000 cultivable hectares in total in Peru, only between 150,000 and 200,000 hectares are destined for export. An FTA gives us the opportunity to improve this situation, since it will allow farmers who are not dedicated to export and sell, for example, fruits and vegetables to the wholesale markets of the cities,They can also sell their products in the United States, which is the largest market in the world. Many of these products that we have not yet exported are in great demand abroad and would represent significant profits for the producers that dedicate themselves to them. The agricultural sector is a sector that will win with the FTA. Addressing the demanding US market requires compliance with a set of sanitary and phytosanitary standards, as well as a series of measures and technical requirements that constitute obstacles to the entry of our products. Through the FTA, these issues are being negotiated, in such a way that a better understanding is achieved among the public institutions responsible for ensuring compliance with these measures, more information and technical assistance for the Peruvian producer,facilitating the real access of our agricultural products to the USA. On the other hand, inhibiting us from signing an FTA or applying high tariffs to foreign products will not protect our agriculture, because there are similar products that enter through other countries that do not have subsidies but are more competitive. Of the so-called sensitive products (sugar, meat, rice, wheat, cotton, corn and milk), only three (cotton, corn and wheat) could be really affected by the entry of imported products from the United States. The producers who dedicate themselves to these crops will be protected by the State through various mechanisms so that the FTA does not harm them.One of these mechanisms is the imposition of special safeguards to restrict their entry in the event of a sudden increase in imports or a fall in international prices. In addition, the FTA will contemplate longer terms for the elimination of import tariffs on these products. Finally, the State will establish mechanisms for conversion and direct compensation, which will be applied at least to sensitive products that, like cotton, corn and possibly wheat, are part of an export chain in which agriculture and industry come together.. This will seek to improve the competitiveness of farmers by providing a service platform that reinforces state support in technological, health and commercial assistance aspects.The FTA will contemplate longer terms for the elimination of import tariffs on these products. Finally, the State will establish mechanisms for conversion and direct compensation, which will be applied at least to sensitive products that, like cotton, corn and possibly wheat, are part of an export chain in which agriculture and industry come together.. This will seek to improve the competitiveness of farmers by providing a service platform that reinforces state support in technological, health and commercial assistance aspects.The FTA will contemplate longer terms for the elimination of import tariffs on these products. Finally, the State will establish mechanisms for conversion and direct compensation, which will be applied at least to sensitive products that, like cotton, corn and possibly wheat, are part of an export chain in which agriculture and industry come together.. This will seek to improve the competitiveness of farmers by providing a service platform that reinforces state support in technological, health and commercial assistance aspects.they are part of an export chain in which agriculture and industry come together. This will seek to improve the competitiveness of farmers by providing a service platform that reinforces state support in technological, health and commercial assistance aspects.they are part of an export chain in which agriculture and industry come together. This will seek to improve the competitiveness of farmers by providing a service platform that reinforces state support in technological, health and commercial assistance aspects.
Free Trade Agreements and the medium, small and micro enterprises (MSMEs):
Great possibilities open up for the micro, small and medium enterprises (MSMEs) of Peru with the Free Trade Agreement with the United States. The opportunity to develop from their integration into international trade is presented as a real and concrete alternative for this business sector, both in terms of the development of small individual companies and their realization as members of production chains. Whether they export directly or in association with other small companies, or whether they participate as suppliers to exporting companies, integration in production chains offers small companies the possibility of articulating with a greater offer of exports and with more advanced business processes, which make access to credit, technology, training and, in general, possibleservices typical of a developed market.
To make this important transformation a reality, efforts must be made to promote schemes of associativeness and reconversion of MSMEs. It is precisely in this direction that the actions carried out in the Guayaquil Round (Fifth Round of Negotiations) go to identify 12 Andean regional profiles of associativity, whose revised versions were presented to the Roundtable on Capacity Building during the Tucson Round (Sixth Round). And in that direction, the proposals for the creation of a reconversion fund for MSMEs are also going, as well as the promotion of the establishment of franchises of Andean MSMEs with North American firms and access to the United States market through state purchases. The challenge of adapting to the demands and standards of the world market to enter,Through the Free Trade Agreement, in the best conditions for the most buying market in the world, it has been assumed with great expectation by the MSMEs unions that participate in the negotiations in the Adjunct Room through their representatives.
Free trade and export agreements:
The United States market is important for Peru not only because of the size of its population (285 million people) or because of its great purchasing power ($ 35,000 per capita per year), but also because of the complementary nature of the economies of both countries.. Due to this, and to the enormous diversity of the productive potential of Peru, there are opportunities for the different economic sectors throughout the country. It must be considered that only 32 groups of products have an export level to the United States of more than 5 million dollars and most of them still have a ceiling to grow. These include asparagus, mangoes, onions, some timber products, gas turbines and certain electrical conductors, cement, some species of frozen fish, and various clothing. Likewise,There are 71 groups of products that have export levels of between 1 and 5 million dollars, and also have great development potential and can continue to expand their exports to the United States, covering new market segments, as well as new geographic areas that do not they are being sufficiently cared for. Among them are bananas, walnuts, grapes, tropical woods, pump parts, steel kitchen boards, decorative stones, clinker cement, boric acid, clothing and textiles. But where Peru has the greatest potential to develop is in the relatively new export products, made up of more than 280 product groups, which are currently exported in amounts less than $ 1 million. In this last group are lettuces, seasoned sauces, garlic, some cereals,sweet corn, spices, cleaning products, organic products, prints, woods in various states of manufacture, electrical conductors, metal furniture, tools, metal pipes, parts and pieces for automobiles, sulfides, glasses, bathroom toilets, abrasives, clays, glass bottles, live ornamental fish, crabs, trout, fish fillets, various mollusks, cosmetics, organic fertilizers, sulfates and borates, women's underwear, clothing and textiles, among others.crabs, trout, fish fillets, various molluscs, cosmetics, organic fertilizers, sulfates and borates, women's underwear, clothing and textiles, among others.crabs, trout, fish fillets, various molluscs, cosmetics, organic fertilizers, sulfates and borates, women's underwear, clothing and textiles, among others.
Free Trade Agreements and biodiversity:
The negotiation of the FTA in the field of the environment is aimed at achieving a balance in the implementation of national regulations, so that obstacles to trade are not raised and, at the same time, they fulfill their task of preserving the environment. For the first time in an international trade negotiation, the FTA negotiation with the United States includes the issue of the environment, which is closely linked with the protection of our biodiversity and with the specific commitments of the environmental legislation of each country. It is not a matter of one party imposing its legislation on the other, but rather that both comply with their own legislation. Peru has legislation in favor of eco-efficient production processes, it has environmental regulations to benefit efficiency and competitiveness. However,The challenge for Peru in terms of environmental protection involves improving our laws and policies, as well as the management capacity of the Peruvian State. In this sense, the FTA represents a unique opportunity to: (i) introduce the necessary institutional reforms to improve the environmental management system, (ii) have clear and predictable rules that guarantee mutual support between commercial and environmental regulations, (iii) Aid from American-funded cooperation programs. These elements are necessary both to ensure the proper use of our biodiversity and to encourage investments in environmental activities.(i) introduce the institutional reforms necessary to improve the environmental management system, (ii) have clear and predictable rules that guarantee mutual support between commercial and environmental regulations, (iii) help from cooperation programs financed by the United States. These elements are necessary both to ensure the proper use of our biodiversity and to encourage investments in environmental activities.(i) introduce the institutional reforms necessary to improve the environmental management system, (ii) have clear and predictable rules that guarantee mutual support between commercial and environmental regulations, (iii) help from cooperation programs financed by the United States. These elements are necessary both to ensure the proper use of our biodiversity and to encourage investments in environmental activities.These elements are necessary both to ensure the proper use of our biodiversity and to encourage investments in environmental activities.These elements are necessary both to ensure the proper use of our biodiversity and to encourage investments in environmental activities.
CONCEPTUAL FRAMEWORK
EFFICIENCY OF PRODUCTIVE CHAINS:
Efficiency refers to the relationship between the services provided by the production chains and the resources used for that purpose (productivity), compared to an established performance standard. The adequate use of the resources available to the production chains is going to be feasible to have means, which can be used to make the services provided by the production chains efficient. Says Koontz / O'Donnell (1999), an institution is efficient if it facilitates the achievement of institutional objectives and mission with the minimum of costs or unforeseen consequences.
EFFECTIVENESS OF PRODUCTIVE CHAINS:
Interpreting Terry (2003), effectiveness refers to the degree to which the productive chains achieve their objectives and goals or other benefits that they were intended to achieve, provided for in the institutional legislation or set by the managers or management.
ECONOMY OF PRODUCTIVE CHAINS:
Analyzing Evans (2000), the economy is related to the terms and conditions under which the productive chains acquire resources, be they financial, human, physical or technological, obtaining the required quantity, at the reasonable level of quality, in the opportunity and appropriate place and at the lowest possible cost.
COMPETITIVENESS OF PRODUCTIVE CHAINS:
It is the force that must always drive production chains to grow and develop in each of the institutional areas. Interpreting Terry's (2003) thinking, it can be said that competitive advantage is at the center of the performance of a production chain. Productive chains must always be fighting for growth, taking as an alternative the diversification of agricultural production, so that they do not lose sight of the possibility of having the competitive advantage, necessary to maintain confidence in society.
MANAGEMENT OF A PRODUCTIVE CHAIN:
Interpreting Steiner (1999), the management of a production chain is defined in multiple ways, depending on the point of view, convictions and understanding. Thus, it can be said that it is the force that directs an entity and that it is responsible for its success or failure. It can be said that it is the performance to conceive and achieve the desired results through the efforts of a group that consists of the use of human talent and resources. Arguably, it is getting things done through the dynamic participation of people. Also that it is the satisfaction of economic and social needs, being productive for the human being, for the economy and for society. That it is a resource to achieve the objectives. Analyzing Robins (2000) and Evans (2000),The management of a production chain is a set of activities designed to convert disorganized resources into the achievement of useful, effective and fully beneficial objectives for the community. This is achieved by effectively using non-human resources, working with people and motivating them to use their full capacity.
RESOURCES OF THE PRODUCTIVE CHAINS:
The human resource is the most important resource that a manager has. Otherwise management is for people and through people. A manager knows that in order to achieve the desired goal, people require direction, they need to be persuaded, inspired, communicated, and able to perform satisfactory job tasks. Resources, other than people, are essential to the success of the corporate manager. The manager should define the link lines to facilitate the coordination of resources and to establish adequate and updated relationships between them. Institutional objectives give purpose to the use of resources by the manager. There is a goal to achieve, a mission to accomplish. A manager is goal oriented.
PRODUCTIVE CHAIN STANDARDS:
According to Koontz & O´Donnell (1999), since the plans are the bases against which the controls must be established, logically it follows that the first step in the process would be to establish plans. However, since these vary in level of detail and complexity, and since corporate managers do not usually observe everything, special rules are established. These standards are, by definition, simple evaluation criteria. They are the points selected in a total planning program where evaluation measures are carried out, so that they can guide managers regarding how things are going without them having to observe each step in the execution of the plans. Standards can be of many kinds. Among the best are evaluable goals or objectives, whether expressed in quantitative or qualitative terms,regularly established in well-operated management systems by objectives.
JUSTIFICATION AND IMPORTANCE OF WORK
JUSTIFICATION
THEORETICAL JUSTIFICATION
Productive chains are entities that, despite the efforts they make, do not achieve good management; therefore they need to be equipped with the most convenient tools so that they can contribute to increasing efficiency, economy, effectiveness, productivity, continuous improvement and competitiveness. The provision of tools such as tactical and strategic planning, structural and functional organization, direction and execution of activities with effective decision-making, coordination between the different elements of the chain and effective internal control; They are basic elements to make productive chains productive and competitive.
On the other hand, if tools such as benchmarking are applied to collect and apply proven successful experiences in other latitudes, it also contributes to greater productivity and competitiveness. In the same way, other tools such as just in time can be applied, to have the respective inputs in the quantity, quality, place and opportunity that is necessary to carry out the sowing. Also the application of kaizen or continuous improvement that will reduce costs and gain efficiency and therefore productivity.
Specifically, the application of any management tool in a positive sense will be valid so that human, material and financial resources can be better used and therefore productivity and competitiveness are available, especially if the development will be within the framework of the treaties of free trade.
METHODOLOGICAL JUSTIFICATION
The investigation starts from the existing problem in the lack of productivity and competitiveness of the productive chains. Regarding this situation, management tools related to intrinsic and extrinsic variables are presented, with the purpose of solving said problem.
This work will analyze productivity and competitiveness of production chains; Then it will explain how management tools contribute to improving these attributes.
PRACTICAL JUSTIFICATION
The application of this study will allow production chains to plan, organize, direct, integrate and control resources, activities, processes and procedures in an efficient and effective way in order to have efficiency, economy, effectiveness, productivity, continuous improvement and competitiveness.
IMPORTANCE
This work may be taken as a reference to carry out the effective management of the production chains.
It is important, because it will allow for the formation of academic training and professional experience.
OBJECTIVES
MAIN GOAL
Determine the way in which the management tools of the productive chains with export potential of the central jungle will facilitate productivity and therefore competitiveness within the framework of free trade agreements.
SPECIFIC OBJECTIVES
- Identify the way in which the implementation of management tools in the productive chains with export potential of the central jungle, facilitate efficiency in the framework of free trade agreements. Determine the way in which the evaluation of the management tools of the Productive chains with export potential of the central jungle facilitate effectiveness in the framework of free trade agreements
HYPOTHESIS FORMULATION
MAIN HYPOTHESIS
The management tools of the productive chains with export potential of the central jungle, facilitate productivity and therefore competitiveness within the framework of free trade agreements.
SPECIFIC HYPOTHESES
- The implementation of management tools in the productive chains with export potential of the central jungle, facilitates efficiency in the framework of free trade agreements.
- The evaluation of the management tools of the productive chains with export potential of the central jungle facilitates the effectiveness in the framework of the free trade agreements.
VARIABLES AND INDICATORS
INDEPENDENT VARIABLE:
PRODUCTION CHAINS MANAGEMENT TOOLS WITH EXPORT POTENTIAL FROM THE CENTRAL JUNGLE
INDICATORS:
X.1. Implementation
X.2. Evaluation
DEPENDENT VARIABLE:
Y. PRODUCTIVITY AND COMPETITIVENESS IN THE FRAMEWORK OF FREE TRADE TREATIES.
INDICATORS:
Y.1. Efficiency
Y.2. Effectiveness
METHODOLOGY
KIND OF INVESTIGATION
This research will be of the applied type, since all aspects are theorized, although its scope will be practical to the extent that they are taken into account by the production chains of the Junín Region and others in our country.
INVESTIGATION LEVEL
The research to be carried out will be at the descriptive-explanatory level, since management tools will be described in all their aspects; and it will explain how they will facilitate the productivity and competitiveness of production chains in the framework of free trade agreements.
INVESTIGATION METHODS
The following methods will be used in this investigation:
- Descriptive.- Because all aspects of management tools and how to achieve productivity and competitiveness of production chains will be described. To infer the information of the sample in the research population.
DESIGN OF THE INVESTIGATION
This work includes the methodological approach and theoretical approach of the investigation. The methodological approach highlights the formulation of research problems, objectives and hypotheses. In the theoretical approach, the development of the variables and indicators of the research in relation to the problems, objectives and hypotheses formulated stands out.
At the end of the research work, first the specific objectives will be contrasted with the general objective of the research. The contrasted specific objectives will be the basis for issuing the partial conclusions of the investigation. The partial conclusions will be the basis for issuing the general conclusion of the work.
Finally, an interrelation will be established between the general objective and the general conclusion until the general hypothesis of the investigation is tested.
POPULATION OF THE INVESTIGATION
The research population is made up of the production chains of the Junín Region.
INVESTIGATION SAMPLE
The sample for this work will be made up of personnel from the production chains of the Junín Region. To define the sample size, the probabilistic method has been used and the statistical formula for populations less than 100,000 has been applied.
Where:
| n | It is the size of the sample to be taken into account for the field work. It is the variable that you want to determine. |
|
P and q |
They represent the probability of the population to be included or not in the sample. According to the doctrine, when this probability is not known from statistical studies, it is assumed that p and q have a value of 0.5 each. |
|
Z |
Represents the standard deviation units that in the normal curve define an error probability = 0.05, which is equivalent to a 95% confidence interval in the sample estimate, therefore the Z value = 1.96 |
| N | The total population. This case 620 people considering those people who have elements to answer for the research topics to be carried out. |
| EE | Represents the standard error of the estimate, according to the doctrine, it must be 0.09 or less. In this case 0.09 has been taken |
Substituting:
n = (0.5 x 0.5 x (1.96) 2 x 620) / (((0.09) 2 x 619) + (0.5 x 0.5 x (1.96) 2))
n = 100
DATA COLLECTION TECHNIQUES
The techniques that will be used in the investigation will be the following:
- Surveys.- It will be applied to obtain information on management tools and on the productivity and competitiveness of production chains in the framework of free trade agreements.
- Documentary analysis.- It will be used to analyze the regulations, bibliographic information and other aspects related to the investigation.
DATA COLLECTION INSTRUMENTS.
The instruments that will be used in the investigation are the following: questionnaire and document analysis guide.
The questionnaire will be used to carry out the survey.
The documentary analysis guide is applied to organize and define the theories that will be taken into account for the theoretical framework of the research.
ANALYSIS TECHNIQUES
The following techniques will be applied:
- Documentary analysis Inquiry Data reconciliation Tabulation of tables with quantities and percentages Understanding graphs
DATA PROCESSING TECHNIQUES
The following data processing techniques will be applied:
- Sorting and classification Manual registration Computerized process with Excel Computerized process with SPSS
SCHEDULE
BUDGET
BIBLIOGRAPHIC REFERENCES
- Andrade, Simón (1999) Development planning. Lime. Editorial San Marcos Chiavenato, Idalberto (2004). Introduction to the General Theory of Administration. Santa Fe de Bogotá-Colombia. Mc. Graw Hill Interamericana SA.Evans, James & Lindsay, William. (2000). Administration and Quality Control. Mexico. Grupo Editorial Iberoamérica SA de CV Johnson Johnson and Scholes, Kevan. (1999) Strategic Management. Madrid: Prentice May International Ltd. Koontz / O'Donnell (1990) Modern Administration Course - An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SAPorter; Michael E. (1996) Competitive Advantage. Mexico. CEC SA de CV Robins Stephen (2000) Foundations of Administration. Mexico. Prentice Hall Hispanoamericana, SA Steiner George (1998) Strategic Planning. Mexico. Compañía Editorial Continental SA. De CV.Stoner, Freeman Gilbert (2000) Administration. Mexico. Compañía Editorial Continental SA. From CV.Terry, George R. (2003) Principles of Management. Mexico: Compañía Editorial Continental SA.
WEB PAGES:
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Rubio Domínguez Pedro (2006) Introduction to business management. theoretical foundations and practical applications.
www.agrobanco.com.pe/cad_prod.htm
www.agrobanco.com.pe/cad_prod.htm
www.agrobanco.com.pe/cad_prod.htm
Ministry of agriculture- Peru
Bank to support agricultural activity in Peru.
alberteinstein2004.pe.tripod.com/tratado_de_libre_comercio.htm
www.tlcperu-eeuu.gob.pe/
www.peru.com/finanzas/idocs/2005/4/25/DetalleDocumento_208339.asp
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