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Gifts for Peruvian locals?

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I'm doing my first trip to South America (Peru) and will be spending most of my time in the Sacred Valley, Cusco and Lake Titicaca areas. Does anyone have a good idea of a small, inexpensive gift that the local people may enjoy? It needs to be something I could easily pack in with my bags.

Is this a good idea (does anyone do this)? I'd like to do something more than just "take" while I'm there.

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