New Zealand

Topics: New Zealand, International trade, World Trade Organization Pages: 5 (1437 words) Published: April 1, 2013
Business Report – Country Analysis NEW ZEALAND|


Executive Summary
With a stable currency, sound-banking principles, and a business friendly government, New Zealand is an opportunity worth exploring. New Zealand supports a business friendly tax system, trade pacts with some of the world’s largest economies and sustains a skilled, well-educated workforce. New Zealand has upgraded its infrastructure and roads and supports a sophisticated telecommunications and advanced internet structure including fast growing software, electronics, and telecommunication industries. I recommend expansion into the New Zealand market to take advantage of current trade pacts and New Zealand’s capital development, research and development and international investment opportunities. Country’s Macro Environment

Country Description
New Zealand is an island located in the Pacific Ocean consisting of a northern island and southern island. New Zealand’s Gross Domestic Product has risen from $US85.46 billion in 2004 to $US142.48 billion in 2011. This represents .23% of the world economy, which is a rise of 1.8% recorded in September 2011. New Zealand has free trade agreements with Malaysia, Australia, China, and all countries belonging to the Association of Southeast Asian Nations. It has closer economic partnerships with Hong Kong, China, Trans Pacific Partnership countries, Thailand, and Singapore. There are also other free trade and partnership agreements under negotiation at present. New Zealand is also part of the World Trade Orgaznization and the Organisation for Economic Co-operation and Development. Major industries in New Zealand include agriculture, horticulture, forestry, mining, and fishing and play a major part in their economy, specifically in the area of exports. These industries create a large number of jobs and are responsible for 7.6% of the GDP. The manufacturing sector accounts for 12.2% of real GDP, and the service industry makes up a large part of the economy contributing to over 2/3 of the GDP. Their transportation infrastructure is far more advanced for a country of its size with 93,000 km of roadways and 4,000 km of rail linked to ports and airports. Marine cargo accounts for 99% of all New Zealand’s exports. In addition, New Zealand has a high number of pilots and aviation aircraft for a country of its size, and about 40 formal air agreements with foreign countries to allow for trade and tourism. The three major international airports in New Zealand include passenger and freight services. According to the Corruption Perceptions Index, New Zealand ranks number one as being the least corrupt public sector in the world. Political Situation and Stability

New Zealand is a democratic country based on a parliamentary system of government where the members of parliament are elected. The political situation is stable, however this is due mainly to the opposition Labour Party lagging in the poles and not necessarily on the strength of the ruling National Party. If the Labour Party’s fortunes turn, this may set the scene for an unstable political situation in New Zealand. Based on the Political Instability Index, New Zealand is ranked 154 out of 165 with 1 being the most socially unrest country, and 165 being the least. Thus New Zealand has a low vulnerability to social protest by disenfranchised citizenry. Legislation affecting inward foreign investment

New Zealand is one of the most open economies in the world due to the reduction in trade barriers including cuts to all tariffs, and the elimination of restrictions to import quantities. Being a member of the World Trade Organization and the Asia Pacific Economic Cooperation, New Zealand is committed to preserving relationships with other trade countries and the strengthening of trade rules. According to the Inward Investment Incentive Program, New Zealand has few subsidies geared toward foreign investors. However, New Zealand has a business-friendly tax...
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