Universidad Del Azuay Faculty of Law School of International Studies
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Universidad del Azuay Faculty of Law School of International Studies Proposal of application of an electronic commerce platform for the internationalization of traditional handicrafts from Azuay to the European Union. Graduate thesis prior to obtaining a Bilingual Bachelor in International Studies minor Foreing Trade Author: Ana María Cordero Merchán; Daniel Eduardo Urgilés Figueroa Director: María Inés Acosta Urigüen Cuenca - Ecuador 2019 DEDICATED TO: We want to dedicate this effort to our families, who have supported us unconditionally throughout our lives. ii SPECIAL THANKS TO: We want to thank our thesis director, María Inés Acosta Urigüen, who has accompanied us unconditionally throughout this university journey. Also, to all the teachers of Universidad del Azuay and officials of the different public and private entities, who have given us their support and guidelines to carry out this research proposal. Finally, we want to thank the artisans of the different cantons of Azuay for their openness, since they constitute a fundamental pillar in the development of this graduate thesis. iii INDEX OF CONTENTS DEDICATED TO: ---------------------------------------------------------------------------- ii SPECIAL THANKS TO: ------------------------------------------------------------------- iii INDEX OF CONTENTS ------------------------------------------------------------------- iv LIST OF TABLES AND FIGURES ----------------------------------------------------- vi List of tables -------------------------------------------------------------------------------- vi List of figures ------------------------------------------------------------------------------ vii RESUMEN ------------------------------------------------------------------------------------ ix ABSTRACT ------------------------------------------------------------------------------------ x INTRODUCTION ---------------------------------------------------------------------------- 1 CHAPTER 1. Handicrafts of Azuay ------------------------------------------------------ 3 Introduction --------------------------------------------------------------------------------- 3 Theoretical Framework ------------------------------------------------------------------- 4 Handicrafts: Background -------------------------------------------------------------------- 5 Handicrafts as popular art ------------------------------------------------------------------- 5 Handicrafts concept according to UNESCO --------------------------------------------- 6 Handicrafts history in Ecuador ------------------------------------------------------------- 8 Traditional crafts of Azuay in the contemporary era ----------------------------------- 9 Legal Framework ------------------------------------------------------------------------ 11 Constitution of the Republic of Ecuador ----------------------------------------------- 11 Craftsman Defense Law ------------------------------------------------------------------- 11 Handicrafts classification according to the working branches regulation -------- 15 Localization -------------------------------------------------------------------------------- 18 Macrolocalization --------------------------------------------------------------------------- 18 Microlocalization --------------------------------------------------------------------------- 25 Current situation of Azuay`s crafts --------------------------------------------------- 28 Selection process of traditional crafts in the Azuay ------------------------------- 28 Craft technical sheets by Azuay`s cantons ------------------------------------------ 30 Sigsig ------------------------------------------------------------------------------------------ 30 Cuenca ---------------------------------------------------------------------------------------- 35 Gualaceo -------------------------------------------------------------------------------------- 42 Chordeleg ------------------------------------------------------------------------------------- 48 Nabón ----------------------------------------------------------------------------------------- 50 Instructional for the handicraft selection matrix ---------------------------------- 52 Methodology --------------------------------------------------------------------------------- 53 Criteria definition --------------------------------------------------------------------------- 53 Aplication of the Weighted Matrix ------------------------------------------------------ 58 Evaluation of crafts based on criteria --------------------------------------------------- 59 Results ----------------------------------------------------------------------------------------- 62 Conclusions -------------------------------------------------------------------------------- 64 iv CHAPTER 2. Selection of markets for the export of Crafts of Azuay ----------- 65 Introduction ------------------------------------------------------------------------------- 65 Theoretical Framework ----------------------------------------------------------------- 66 National Development Plan 2017-2021 ------------------------------------------------ 66 Legal Framework ------------------------------------------------------------------------ 68 Organic Code of Production, Commerce and Investment --------------------------- 68 International Trade Policy of Ecuador -------------------------------------------------- 70 Analysis of the Commercial Situation of Ecuador --------------------------------- 72 Trade Balance Analysis -------------------------------------------------------------------- 74 Main non-oil trade partners of Ecuador------------------------------------------------- 75 Trade Agreements of Ecuador in force ------------------------------------------------- 77 Analysis of the Multiparty Ecuador-European Union Trade Agreement ---- 79 Background ---------------------------------------------------------------------------------- 79 Timeline of the negotiations between Ecuador and the European Union -------- 79 Scope of the Agreement ------------------------------------------------------------------- 82 Products Benefited by the Agreement -------------------------------------------------- 83 Tariff elimination schedule---------------------------------------------------------------- 84 Certificate of origin ------------------------------------------------------------------------- 85 Market Selection Process --------------------------------------------------------------- 87 Internationalization Strategies ------------------------------------------------------------ 88 Geographical Area -------------------------------------------------------------------------- 89 Selection of Countries within the European Union ----------------------------------- 90 Country Selection Matrix --------------------------------------------------------------- 92 Methodology --------------------------------------------------------------------------------- 92 Economic valuation criteria --------------------------------------------------------------- 92 Accessibility criteria ------------------------------------------------------------------------ 95 Valuation Coefficients --------------------------------------------------------------------- 96 Comparative analysis of criteria --------------------------------------------------------- 97 Results ---------------------------------------------------------------------------------------- 100 Conclusions ------------------------------------------------------------------------------- 101 CHAPTER 3. Platform of electronic commerce for the internationalization of crafts of Azuay ------------------------------------------------------------------------------ 102 Introduction ------------------------------------------------------------------------------ 102 Theoretical Framework ---------------------------------------------------------------- 102 Definition of E-commerce ---------------------------------------------------------------- 102 Types of E-commerce --------------------------------------------------------------------- 103 Background --------------------------------------------------------------------------------- 104 E-commerce in Ecuador ------------------------------------------------------------------ 104 Current situation of electronic commerce worldwide ------------------------------- 105 What happens in Ecuador? --------------------------------------------------------------- 106 Legal Framework ----------------------------------------------------------------------- 108 Law of Electronic Commerce, Electronic Signatures and Data Messages of Ecuador -------------------------------------------------------------------------------------- 108 v Current Situation of E-commerce in European Union markets --------------- 111 Electronic commerce in Europe --------------------------------------------------------- 111 Electronic Commerce in Germany ----------------------------------------------------- 112 Electronic Commerce in France --------------------------------------------------------- 113 Electronic Commerce in Spain ---------------------------------------------------------- 113 Proposal to create a platform for online sales ------------------------------------- 114 Website definition ------------------------------------------------------------------------- 114 Domain --------------------------------------------------------------------------------------- 114 Requirements to create a website ------------------------------------------------------- 116 Main E-commerce platforms ------------------------------------------------------------