PIE MODEL: In order to be able to develop a critical examination of the strengths and weaknesses of Peru's business environment, this document uses the PIE framework as an analysis of basic . PIE models stand for Politics, Institutions, Economy. Unlike other models such as PEST or PESTLE which are static and neglect the importance of institutions, the PIE framework captures the dynamics within the three environments and the interdependence between them. The PIE framework can be used as a good indicator of the overall business environment in a given company. The PIE model suggests that misunderstanding these elements and considering them as individual entities often makes the difference between the success and failure of internationalization. In addition to the three main elements (Politics, Institutions and Economy), to compare the selected country with others in similar situations, the PIE model emphasizes the importance of pressures coming from the surrounding environment. POLITICS: The political process is based on the distribution of power, income and resources to citizens in an economic system. This distribution leads to the formation of different social groups in society. The political section is closely related to the other two elements of the PIE model. Economic power is an important factor influencing political decisions and there are many other components that drive internal affairs such as trade unions, different cultures, ethnicities or religions. The formation and importance of different social groups are closely linked to both institutions and the economy. The two dimensions support each other and there is a close connection between the development of democratic institutions and progress in ecological terms... middle of paper... in a given country. Strong economic growth in one country can transfer to the entire region to the benefit of neighboring countries. NGOs can lobby on human rights and environmental issues. Countries that are part of a union must respect the policies and objectives of that union and at the same time focus on the development of their own country. Organizations such as the International Monetary Fund and the World Bank have the power to influence institutional development and economic policies. On the other hand, conflicts and disagreements hinder economic development and can push politicians to act in a certain way. Wars and civil unrest in one country may prevent countries from investing in neighboring countries due to fears of that country's war involvement (e.g. Turkey and Syria). Consequently, the national economy and political agenda cannot be isolated in today's globalized market.