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FREE TRADE AGREEMENT BOLIVIA – UNITED STATES

ANALYSIS OVER THE ECONOMIC IMPACT AND DEVELOPMENT OF THE


BOLIVIAN ECONOMY

Presented by:

López Gutiérrez Carolina

Suarez Diego Mauricio

Perez Andres

This Project is presented to Ignacio Mendivelso

Institución Universitaria Politécnico Grancolombiano,

Calle 57 N. º 3-00 Este

Bogotá, Colombia
CONTENT TABLE

Introduction ………………………………………………………………….………………………4
Research Problem……………………………………………………………………………………5
Hypothesis……………………………………………………………………….……………………6
Justification…………………………………………………………………...………………………7
General Objective………………………………………………………….…………………………8
Specifics Objectives…………………………………………………...………………………………8
Characterization (Bolivia) ……………………………………...……………………………………9
General Information…………………………………….………………………………………9
Balance of trade & Exports……………………………………………………………………10
Imports ………………………………………….….……………………………………………11
Economic Information…………………………….……………………………………………12
Business Culture………………………………………………………………………………….13

Characterization (USA) …………..……………………………………………………………… 14


General Information ……………………………………………………………………………14
Gross Domestic Product ………………….…………………………………………………….17
Imports ……………………………………….…………………………………………….…….18
Exports ……………………………………….…………………………………………………..19
Business Culture ………………………………………………………………………………….19

Theoretical Framework………………………………………………………………………………...22

Conceptual Framework………………………………………………………………………………...23

Political Framework…………………………………………………………………………………….24

United Stated…………………………………………………………………………………...24

Business Contract…………………………………………………………………….24

Intellectual Property………………………………………………………………….24

National Regulation and International Agreements……………………………….25

Bolivia………………………………………………………………………………………….26

Investment Law……………………………………………………………………….26

Property and Popular Credit Law………………………………………………….27

Other Rules……………………………………………………………………………28
Cooperation between Bolivia & USA……………………………………………………………….…29

Generalized System of Preferences (SGP) of the United States of America………………32

Cultural integration………………………………………………………………………………….…34

Bibliograph……………………………………………………………………………………………...35
INTRODUCTION

Since the 2000’s the countries of Latin America start to sign a lot of free trade agreements
wit may countries, one of the United States, these agreements established a new aperture of
the local products in many countries around the world. In Case of Bolivia, they don’t was
one of those countries since the Evo Morales start the governate this country, he decides to
reject this agreement and find another destination for his products.

Bolivia is one of the most important producers of Soy in the world, with Argentina the
produce around 20% of the soy that is exported to the USA however Argentina have FTA
with the USA what generates that the Argentinan soy more economic than the Bolivian, this
is one of the examples of the products that Bolivia can include in the FTA with the USA that
can produce an advantage in the economy of this country.

We know that the FTA with the USA can include some benefits but also can include some
disadvantages that can generate different positions about their benefits and costs. At one hand
this FTA includes to Bolivia in one of the countries that can attract new foreign inversion
that can reflect in new and mayors potential exportations. One of the most important
examples is Jewelry, Textiles, and Clothing.

Is clear the differences of both economies, is clear also that the FTA cant gives the same
conditions to unequal economies, nevertheless in the big economy the tariff reduction for the
products considered in the agreement is applicable immediately, for the little economies this
reduction will be applicable as reduction gradually.

This project wants to analyze the impact (direct and indirect) over the scenarios if Bolivia
sings an FTA with the USA, also to include all the information of import and export statistics
between this markets, and all the information available that can help us to define if this FTA
can benefit to both parts.
RESEARCH PROBLEM

The impact over the economic growth of Bolivia if they subscribe a Free trade Agreement
with the United States and the position of Bolivia as a part of the global wave in the liberation
of the economy that is present in the region.
HYPOTHESIS

Can be the Free trade agreements with the United States nocive for any country if don't
have a similar economy.
JUSTIFICATION

We think that a between detailed analysis of the strengths and weaknesses of Bolivian
Economy and the research process of the best products to commercialize among Bolivia and
the United States. And determine how can benefit this kind of agreements in some economies
in development and how these countries can take advantage of this FTA's. All this help to
define the best option to Bolivia in the case to sign an Agreement with the United States.
GENERAL OBJECTIVES

● To Know all the impact that can bring the sing of the free trade agreement with the
United States and how can benefit can be for any country

SPECIFIC OBJECTIVES

● To Investigate the Economies involved in this Agreement, in order to determine what


will be negotiated
● To know the status of each country, political, social and cultural in order to define if
the climate is possible for this kind of agreements
● To explore the areas to define to include in this project, commerce, good, and service
to include in the agreement
● To confirm if the goods and services that Bolivia has corresponded to an export offer
that USA needs and vice verse.
CARATHERIZATON

BOLIVIA

GENERAL INFORMATION

Official Name: Plurinational State of Bolivia

Capital: Sucre

Official languages: Spanish and 36 indigenous languages

Demonym: Bolivian

Government: unitary presidential constitutional republic

President: Evo Morales

Currency: Boliviano

Population: 11.051.600

Belonging to: CAN, FMI, MERCOSUR, OEA, ONU, UNASUR

Bolivia borders: Argentina, Brazil, Chile, Peru and Paraguay

Religion: Christianity (Datos Macro, 2017)


BALANCE OF TRADE

Bolivia had a negative trade balance. In line blue, you can see the trend of the exports and
the line correspond the imports. The graph shows the commercial increase that it has had in
the course of 20 years, although its imports are greater than its exports, thus generating a de-
balance in its economy (Observatorio Economico, 2017).

EXPORTS
Exported products: Petroleum gas, zinc ore, gold, metallic mineral precious and flour of
soybeans (Observatorio Economico, 2017).

Countries to which you export: Brazil, Argentina, South Korea, India and The United States
(Observatorio Economico, 2017).

IMPORTS

Imported products: Cars, oil refining, delivery trucks, buses and pesticides (Observatorio
Economico, 2017).
Origin of your imports: China, Brazil, Chile, The United States and Argentina (Observatorio
Economico, 2017).

ECONOMIC DATA

NATIONAL ACCOUNT
PIB anual 2017 33.202M.€
PIB Per Cápita 2017 3.004 €
Total debt 2016 13.861
Debt (%PIB) 2016 44,86%
Debt Per Cápita 2016 1.273 €
Corruption Index 2018 29
Competitiveness Ranking 2018 105º
Innovation Ranking 2018 117º

WORKING MARKET
Unemployment Rate 2017 3,20%
Ranking 2017 54º

BUSINESS
Doing Business 2019 156º

TAXES
IVA 2019 13,00%
COMMERCE
Exports 2017 6.862,3 M.€
Exports %PIB 2017 20,67%
Imports 2017 8.235,6 M.€
Imports % PIB 2017 24,80%
Balance of trade 2017 -1.373,2 M.€
Balanza of trade % PIB 2017 -4,14%

(Datos Macro, 2017)

BUSINESS CULTURE

1. The important thing in the first meetings is to create a relationship based on trust.
2. Address to the person by the professional title that he has or otherwise always call
him Mr. or Mrs. (Legiscomex, 2016)
3. Do not give yellow or purple flowers, if you want to have some detail it is best to use
wine or chocolates.
4. Punctuality is not important, delays of 30 minutes in meetings are accepted
5. The meetings are used to get to know the partners in the personal area and not to talk
about business.
6. Wait for the partners to take the conversation to the business focus.
7. Include the academic titles on the presentation card and the information must be in
Spanish. (Legiscomex, 2016)
8. Do not show trouble or impatience in meetings.
9. Always be very courteous and not say things directly.
10. the festivities of the country must be respected, usually suspend their work to
celebrate
DAY CELEBRATION
January 1 New Year
january 22 Day of the Plurinational State
March - April Easter
May 1 Labor Day
June Corpus Christi
June 21 Aymara New Year
November 2 All Saints day
December 25 Christmas

11. the costumes are important, it is always recommended to wear suits, shirts, and ties,
women with heels, although usually women are not very common to see them in
business because in Bolivia the men are macho.
12. The answer to negotiation is a delay, prefer the national product, it must be very
convincing when starting a negotiation with them (Banco Santander, 2018).
UNITED STATES OF AMERICA

It is the Constitutional Federal Republic with a presidential system, its Currency: The dollar,
which has been the official currency of the country since 1792, is the third most populated
country in the world, with around 330 million inhabitants and is the 3rd largest economy in
the world. export in the world

Surface
Including territories and water total 9,826,675 km² and the present is formed by 50 states
(The State of Hawaii is an archipelago of the Pacific Ocean and is the only state of this
country that is not found in America.)

Religion

The United States in its constitution has freedom of worship and the participation of different
religions is distributed as follows: Protestants are 46.5%, Catholics 20% and the remaining
percentage of 35% is divided between Mormons, Jehovah's Witnesses and Orthodox, among
other Christians. Christianity remains the dominant faith in the United States, with seven out
of ten Americans
External debt

The national debt of the United States has exceeded $ 22 billion for the first time in its history.
The debt has increased by more than $ 2 billion in the two years since President Trump took
office in January 2017

VAT
five states that do not have sales tax Alaska, Delaware, Montana and Oregon, the other states
the TAZ varies from 2% to 7%
GROSS DOMESTIC PRODUCT

The US PIB in 2018 grew by 2.9% compared to 2017 In 2108, its GDP was 17,353,175
million euros, making the United States the world's leading economy in terms of PIB.
If we order the countries according to their PIB per capita, the United States is in an excellent
place referring to the standard of living of its inhabitants and ranks 9th in the Ranking (Datos
Macro, 2017).
IMPORTS

In general, the country day after day creates more commercial alliances and coordinates with
others the world economic system., the United States is a country that promotes trade and
economic growth. The main imported products with the highest value in 2018 were vehicles,
crude oil, telephone sets, computers, and auto parts.

The United States imports mainly from China, Mexico, Canada and Germany (Observatorio
Economico, 2017)

Origins countries (Observatorio Economico, 2017):


EXPORTS

The main exported products with the highest value in 2018 were Refining of Oil, Cars,
Airplanes, and Helicopters.
The United States exports mainly to China, Mexico, Canada and Germany

Products (Observatorio Economico, 2017)

Destinations (Observatorio Economico, 2017)


BUSINESS CULTURE

To begin a successful negotiation process with US entrepreneurs, it is important to consider


some general aspects of the business culture that characterizes this country.

● Because of its cultural diversity, the United States is a complex country since each of
these groups and communities conserves its own business culture. They are cordial
in the treatment and very attentive, they are characterized by being very good
negotiators, they tend to be direct during the process, they tend to demonstrate
disagreement in a clear way.
● Americans always seek to negotiate under a win-win scheme for both parties, which
allows establishing long-term business relationships. They are also very persistent
when it comes to solving problems during negotiation. They are characterized by
considering that there is always a solution to solve the problems.
● Innovation in products or services is a factor that weighs in the purchase decision.
They like to take advantage of new opportunities and do not fear change.
● As for business meetings, Americans are very punctual in appointments. It is
necessary to schedule them in time and avoid possible breaches.
● . The official language of the United States is English, for this reason, the employer
must be prepared for the negotiation to be carried out in this language.
● Respond promptly to emails or calls made by potential US customers.
● It is important that when you meet the people with whom you are going to meet, offer
your business cards. Similarly, carefully read the cards of your counterpart to avoid
mistakes in their names as this will look in bad taste.
● The most usual way of greeting is with a firm handshake. In the same way, always
try to address a person who knows for the first time by the surname preceded by the
title "Dr., Ms., Miss, or Mr. as the case may be.
● As for the costumes, take something formal and keep in mind the place where the
negotiation will take place.
● The negotiators are very direct, they look for quick results and they value the
information. (Procolombia, 2011)
THEORETICAL FRAMEWORK

Through the twentieth century, the United States has been the main market for exports from
Latin America and the main source of its imports.1 / before the First World War the United
States had replaced the United Kingdom as the most important trading partner in the region
and the US dominance has never been called into question again. To in the mid-nineties,
the US share in exports of Latin America are superior of 45%, while its share in imports
exceeded 40%. Although the market share represented by the United States tends to vary
inversely with distance (maximum in the Caribbean basin and minimum in the Southern
Cone), its dominant position at the regional level is unquestionable (Blumer-Thomas,
2005).

The Free Trade Agreements in full of sense, is a tool of interchange and development in the
countries and regions, however n the parts involved always will be a part winner and
another parts that probably lose, this cause many controversy because some implications
politics, economic, social and sovereignty that possible can be affected, although we must
take some considerations into account (Acosta & Falconi, 2005).

According to this, we want to know how the benefit to each country is hard, the more
important issue here is to define the impact that the FTA’s can bring to the countries that
are involved, however we want to define how to get all the information about this
Agreements can help us to get a better idea that the process that some countries in this case
Bolivia have to do to negotiate a good agreement with the USA. Is clear that we have to
consider all the economic, social and politics variables that we will have for this process,
for this reason is need it to know the all possible to get the better agreement.
CONCEPTUAL FRAMEWORK

-Improve the welfare of the population.


- Expand sales of products and services.
- Expand sales of agricultural products.
- Achieve favorable agreements.
- More stable and secure businesses.
- Precise rules on aid.
- Have clear measures.
- Reasonable levels of protection.
- Greater transfers of new technologies.
- Settlement of disputes
Free Trade Aggrement

A Free Trade Agreement (FTA) consists of a regional or bilateral commercial


agreement to expand the market for goods and services among the participating
countries. Basically, it consists in the elimination or substantial reduction of tariffs
for the goods between the parties, and agreements in the matter of services. This
agreement is governed by the rules of the World Trade Organization (WTO) or by
mutual agreement between the countries.

1. Access to Markets.
2. Agriculture.
3. Services
4. Investment.
5. Subsidies "Antidumping" And Compensatory Rights.
6. Competition Policy.
7. Intellectual Property Rights.
8. Solution of Differences.
9. Public Sector Purchases
POLITICAL FRAMEWORK

UNITED STATES

Business contract:

- Define with the supplier their obligations and the quality of the product
- Laws: Article 1 (General Provisions), Article 2 (Sales) of the Uniform Commercial
Code and Article 9 (Secured Transactions).
- choose the Incoterm

Intellectual Property

- National Organizations: United States Patent and Trademark Office and the U.S.
Copyright Office

- Regional Organizations
1. UNECA (UN Economic Commission for Africa)

2. APEC (Asian-Pacific Economic Cooperation)


3. UNECE (UN Economic Commission for Europe)
4. ECLAC (UN Economic Commission for Latin America & the Caribbean)
5. ESCWA (UN Economic and Social Commission for Western Asia)
- International Membership
1. Member of the WIPO (World Intellectual Property Organization)
2. Signatory to the Paris Convention For the Protection of Intellectual Property
3. Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual
Property Rights (TRIPS)
National Regulation and International Agreements

(Santander trade Portal, April 2019)

BOLIVIA

The national constitution of the state of 2009 recognizes the existence of indigenous
communities, where it has the right to autonomy, self-government, its culture, the recognition
of its institutions and the consolidation of its territorial entities.
(Bolivia, gobernanza – autonomia, 2019)

INVESTMENT LAW

In 1990, a new Investment Law was enacted. The salient points of this Law

They are the following:

• Guarantees same rights, obligations and guarantees to national and foreign investors.

• Guarantees the right to property without any limitation, except for those stipulated by the
Constitution and / or laws.

• There are no restrictions on the entry and exit of capital or the remittance abroad of
dividends, interest and royalties in any bank or authorized exchange house.
• Guarantees the free convertibility of the currency and the power to carry out all types of
operations in national or foreign currency. The exchange rate between the local currency and
the US Dollar is fixed, as of March 30, 2010, 7.07 Bs / USD.

• Guarantees the freedom to contract investment insurance in the country or abroad.

• Guarantees the free import and export of goods and services.

• Guarantees the free determination of prices and the freedom of production and
commercialization of goods and services.

• Guarantees the freedom to submit contractual disputes to arbitral tribunals.

• Guarantees the freedom to negotiate and establish wages and labor benefits between the
parties (employers and workers) guaranteeing the National Minimum Wage.

• Export-oriented industrial free zones, commercial free zones and storage terminals, as well
as the regime of temporary admission for export, have the faculty to operate under the
principle of customs and fiscal segregation, with exemption from tax and tariff impositions.

PROPERTY AND POPULAR CREDIT LAW (PCP)

The Law has as main objectives the creation of greater opportunities for Bolivian citizens to
access democratized credit and to participate more actively as investors in financial markets,
created by the capitalization process and by the Law. To do this, it establishes:

• The mobilization of savings and popular investment

• The expansion of the productive microcredit of services and housing and its better
distribution

• The reform of the administration of public service cooperatives in order to improve and
expand their coverage

• The expansion of financial services to municipalities


• The strengthening of the financial intermediation system, its regulation and supervision

• The restructuring and unification of the registry of persons.

OTHER RULES

● Investment Law: Law 1182 of September 17, 1990


● Privatization Law: Law 1330 of April 24, 1992
● Capitalization Law: Law 1544 of March 21, 1994
● Popular Property and Credit Law: Law 1864 of June 15, 1998
● Securities Market Law: Law 1834 of March 31, 1998
● Insurance Law: Law 1883 of June 25, 1998
● General Law of Concessions of Public Transport Works: Law 1874 of June 22, 1998
● Hydrocarbons Law: Law 1689 of April 30, 1996 and regulatory decree
● Electricity Law: Law 1604 of December 21, 1994 and regulatory decree
● Telecommunications Law: Law 1632 of July 5, 1995 and regulatory decree
● Mining Code: Law 1777 of March 15, 1997 and regulatory decree
● Law of the National Agrarian Reform Service: Law 1715 of October 18, 1996
● Forestry Law: Law 1700 of July 12, 1996
● Law of the Environment: Law 1333 of April 27, 1992
● Law on the Development and Tax Treatment of Exports: Law 1484 of April 6, 1993
● Law of Banks and Financial Entities: Law 1488 of April 14, 1993
● Law of the Central Bank of Bolivia: Law 1670 of October 31, 1995
● Tax Reform Law: Law 843 of May 28, 1986
● Modification to the Law of Tax Reform: Law 1606 of December 22, 1994 and
regulatory decrees
● Copyright Law: Law 1322 of April 13, 1992
COOPERATION BETWEEEN BOLIVIA & USA

The trade statistics do not go hand in hand with the anti-American message pronounced by
the MAS. Exports to the United States grew by 193% in the last ten years and more and
more products are imported from the US market
.

Politics does not mess up business. And that happens between Bolivia and the United States,
despite the hard and permanent speech of Evo Morales against the United States and the
almost null treatment from the White House to Palacio Quemado. Still, trade between the
two countries is on the rise since the Bolivian president came to the Presidency. Experts see
that the bilateral economic relationship can improve.
When Morales arrived at Palacio Quemado, Bolivia exported products to the US for $ 360
million dollars; today the figure grew nearly three times more: the last management goods
were marketed to the North Country for the value of $ 965 million dollars.

In terms of imports, Bolivia, in 2006, bought $ 346 million dollars from the United States.
That figure almost tripled until the last administration, since the Plurinational State imported
$817 million dollars in products made in the US, which on Tuesday, July 4 will
commemorate its 241 years of independence (US Embassy in Bolivia, s.f.).
These data were prepared by the Bolivian Foreign Trade Institute (IBCE) based on
information from the National Institute of Statistics (INE).

Evo Morales was elected as president in January 2006 and arrived with a tough political
speech against the United States. In his first message he gave the pattern of the relationship
he was going to have with Washington: "That cocaine is not an excuse for the United States
Government to dominate or subdue our peoples. We want real dialogue, without submission,
without blackmail, without conditions, "he stressed.

Thomas Shannon, at that time undersecretary of State for Latin America of the United States,
heard the message of the new dignitary in the Bolivian Congress. The diplomat said that the
commercial relationship between Washington and La Paz was going to be prioritized. .

The United States, despite the ideological-political difference, is the main market for many
countries classified as socialist. "People's China and Vietnam find their main market in the
United States. And for Bolivia, the United States became one of the main trading partners
with the growth of exports and imports.

From 2006 to 2016, Bolivia exported to the country of the north $ 9,324 million dollars,
which means a growth of 193% in the last ten years.

Confidence in the growth and sustainability of business and trade between Bolivia and the
United States is always present. That is why the commercial alliances and business
management, as well as the investments of US entrepreneurs in Bolivia, is growing steadily

The United States became the fourth country in the list of imports to Bolivia. It is after China,
Brazil and Argentina. This place shows that the political does not affect the commercial
relationship.
Fuels, including diesel, are the products that Bolivia imports most from the United States. It
is done for a value of $ 91,412,763 dollars, according to data from the IBCE. It is followed
by gas turbines, crude gold, airplanes and aircraft, lubricating oils, wheat in grain, machines
and mechanical devices, drilling or drilling machines, vehicles for the transport of goods and
4x4 campers.

There are 3,766 products that Bolivia imported from the US for a value of $ 817,190,648
dollars, according to the reports of the IBCE 2016 management.
Within the framework of exports, the United States displaced Argentina from the second
place in the list of suppliers of Bolivian products, which reached 269 for a value of $
964,515,732 dollars. Crude gold occupies 47% of Bolivian exports to the US market. It is
followed by unalloyed raw tin, alloyed raw silver, precious metal jewelry, quinoa, shelled
Brazil nuts, crude petroleum oils, fuel oil, tungsten ore and refined copper (IBCE, 2008).

In WASHINGTON, DC, July 6, 2017 signed a Customs Agreement for Mutual Assistance
of Customs (CMAA,) on July 6, 2017 this agreement marks a significant milestone in
collaboration on security and trade facilitation between the two countries. With this new
agreement signed, the United States now has seventy-nine (79) CMAA with other countries
around the world This agreement strengthens the resistance of these two nations against
threats by expanding cooperation and the exchange of information with our international
partners. The Customs Mutual Assistance Agreement "will greatly facilitate the work of the
United States Customs and Border Protection Office and the United States Administration of
Immigration and Customs to prevent, detect and investigate customs offenses The CMAA
are bilateral agreements between countries that are applied by their respective customs
administrations and are valuable tools for compliance with customs laws. The CMAA
provide the legal framework for the exchange of information and evidence to assist countries
In the application of customs laws, including areas such as tax evasion, trafficking,
proliferation, money laundering and terrorism-related activities.

In February 2019, after a day of dialogue between the two countries in La Paz, an agreement
was signed in which it is established that the government of Barack Obama will allocate US
$ 22 million for health programs; of this amount, Bolivia will administer US $ 9 million. The
execution of this cooperation will last six years.
The agreement signed on health matters is a sign of a change in the mode of distribution of
resources. Of the US $ 22 million, more than US $ 9 million will be executed by the Ministry
of Health. These resources will be allocated to health networks.
The health program is the first agreement signed under the framework agreement between
both countries. Before, the Bolivian Government permanently demanded, the United States
destined its economic resources for cooperation without the respective control by the State.
The deputy assistant secretary of the Department of State of the United States, Kevin
Whitaker, for his part, highlighted the progress made in the meeting with Bolivian officials.
"We are committed to making the actions that were agreed upon a reality," the official
remarked.
Whitaker arrived in La Paz accompanied by other US authorities to work on aspects related
to legal and economic cooperation, drug trafficking and commercial exchange issues.
GENERALIZED SYSTEM OF PREFERENCES (SGP) OF THE UNITED STATES
OF AMERICA

In this agreement there are 129 countries (2011), among which is Bolivia

Objectives the Generalized System of Preferences (GSP)

Is designed to promote economic growth in developing countries by providing preferential


tariff-free access for imports for the entry of nearly 5,000 products from beneficiary countries
and territories designated by the US Government (IBCE, 2008)

Subscription Date The SGP

It is a program in force since 1976 and is reviewed periodically eliminating or including


products after evaluation of the beneficiary country. The last extension of the program is
valid until July 31, 2013

Tariff Release Program

The list of products benefiting from the GSP is 4,881 between agricultural and industrial
goods. (IBCE, 2008)
Balance of trade
In the period from 2008 to 2018 this is the balance of imports and exports
CULTURAL INTEGRATION

Culture Bolivian and American culture are two totally different cultures, because in Bolivian
culture is based on union, where all the members of a community are well, the benefit is
collective and remains under a regime where the leader of the house is still the man, it is a
macho culture.

During years and due to all the history that it collects, since its colonization it is seen that
many of its customs are still maintained despite the arrival of the Spaniards. It is a culture
full of traditions and varied customs, as reflected in its food, music, clothing, festivities and
respect for nature and Pachamama.

The union they have with nature and Pachamama makes it a culture very closed to the
entrance of external product. It is a country that protects the local trader, where it always has
the priority of internal growth, making this country a bit complicated when negotiating.

On the other hand, we see American culture, as a multifaceted culture, where the priority is
to teach people individualism, where personal achievement is most important, where the
priority is work and growth in it. The most important letter of introduction is the work and
how much time is devoted to it.

It is a very diverse culture due to the number of migrants who arrive annually in this country,
being such a large country with different types of climates, nationalities, traditions, makes
this a very convenient country when choosing to do business.

American culture is not macho, both women and men work on equal terms.

Based on this information, the negotiations that could be established between Bolivia and the
United States are very diverse, although with certain points to highlight, the Bolivian prefers
to conduct negotiations in Spanish, while American culture prefers a 100% business in
English.

The handling of negotiations by Bolivia should be done only with men, since their customs
do not allow women to integrate into these issues, while American culture has free will in
this matter, since the inclusion of women is important in that country. (Studycountry, s.f.)
TYPE AND TECHNIC OF INVESTIGATION USED IN THIS PROJECT

Documentary research.

This type of research is carried out, as its name implies, based on documentary sources, that
is, on documents of any kind. As subtypes of this research we find the bibliographic, the
hemerographic and the archival research; the first is based on the consultation of books, the
second on articles or essays in magazines and newspapers, and the third on documents
found in the archives, such as letters, trades, circulars, files, and so on.

Field research. This type of research is based on information that comes, among others,
from interviews, questionnaires, surveys and observations. As it is compatible to develop
this type of research along with documentary research, it is recommended that the sources
of the documentary nature be consulted first, in order to avoid duplicity of works.

Exploratory Investigation

According to the investigation of this project, we want to define why we chose the
Exploratory investigations because offer a first approach to the problem that is to be studied
and known. The exploratory type research is make to know the topic that investigate, which
allows us to "familiarize" ourselves with something that until now we did not know about.
The results of this type of research give us a panorama or superficial knowledge of the
subject, but it is the inevitable first step for any type of further investigation that may be
carried out. With this type of research either the initial information is obtained to continue
with a more rigorous investigation, or a hypothesis is left raised and formulated (which can
be retaken for new investigations, or not).
RESEARCH RESULTS

Based on the type and technique of the investigation, and reviewing all the documentation
that supports this project, we conclude that according to the approximations we made with
the research that the hypothesis we had to confirm if it was possible that the Bolivian
economy could grow if a Free Trade Agreement was reached. trade with the United States,
we determine that the Bolivian economic projection is ready to open its market abroad,
although there are signed agreements but advancing a political approach with the United
States could generate greater growth in its economy.

Although within the economic policy that is managed is much closed due to the policies
determined by its president, although there are many opportunities that should be explored
so that Bolivia is a country that can apply to these agreements.
BIBLIOGRAPHY

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