International Business

9 Pages 2189 Words

en the domestic market is saturated and inelastic. As a result, people in one nation can enjoy the goods and services from other nations of the world. This also creates lots of world- class brands in the world such as Coca-Cola soft drinks, Sony play station and McDonald’s hamburgers.

New Zealand is a small, far-off country which population is only 3.4 million compared to the similar size country like Japan, which has over 100 million people. The firms of New Zealand have to face one fact, which the domestic market is easier saturated, and they have ability to produce goods and services to satisfy the needs of the world. Globalization accelerated the emerging of New Zealand into the global economy.

There is over 50% significant increasing in overseas merchandise trade from 1984 to 1999, which one figure shows this below.



The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantages of national differences in the cost and quality of factors of production such as, labor, land and capital. (Charles, Hill 2003,7) It is also simply understudied that each country can specialize some goods and services, which they produce more efficiently by lower their overall cost.

New Zealand has favorable land and climate. As it is located in the Pacific Ocean, there are few droughts and the average temperature is 12 degree centigrade annually. It is really ideal for farming horticulture and forestry. Grass grows yearly. New Zealand’s farmland is the most productive in the world. New Zealand’s “clean green and unspoiled” image provides lots agricultural products to some buyers have been more concerned about the environmental conditions in which crops, fruit, vegetable and meat are grown. The physical resources determine that New Zealand exports feature primarily based commodities, generally in structurally unattractive business.

New Zealand had very large sha...