Alpaca Chullos

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STRATEGY MARKETING PLAN FOR EXPORT OF

ALPACA CHULLOS TO NEW ZEALAND

INTERNATIONAL MARKETING

PROFESSOR

ANGLAS SANCHEZ, ENRIQUE

CYCLE

VIII

ROOM

814

SEMESTER

2012 I

COORDINATOR:

MEMBERS:

COBIAN ALIAGA, CARLOS

DOMINGUEZ IPANAQUE, DEYANIRA

HUAMN GRANDA, NOLY

MAX CERCADO, JONATAN

MIYASHIRO AGUIRRE, MITSUKO

SUREZ SIESQUEN, SARA


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INDEX

1. DECISION TO INTERNATIONALIZE YOUR BUSINESS

2. INFORMATION ON THE PRODUCT CHOSEN TO EXPORT

3. INFORMATION ON THE SELECTED FOREIGN MARKET

4. STUDY SITUATION: THE TARGET MARKET

4.1 ECONOMIC

4.2 LEGAL

4.3 POLICY

4.4 CULTURAL

4.5 SOCIAL

5. TARGET MARKET SEGMENTATION, POSITIONING

6. PROCESS OF SELECTION OF MARKETS

7. STRATEGIES OF INTERNATIONAL MARKET ENTRY I

8. STRATEGIES OF INTERNATIONAL MARKET ENTRY II

9. MARKETING MIX (PRODUCT)

10. MARKETING MIX (PRICING)

11. MARKETING MIX (PLACE)

12. MARKETING MIX (PROMOTION)

13. ORGANIZATIONAL STRUCTURE

CONCLUSIONS

ANNEXES

BIBLIOGRAPHY AND SOURCES OF INFORMATION (INCLUDING

INTERNET ADDRESS)


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PRESENTATION


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NEW ZEALAND

1. Decision to internationalize your business

2. Information on the product chosen to export

The chullo (Aymara, Quechua, ch'ullu) is a cap with ear tissue of alpaca or

other animals and in combination with synthetic f ibers. Native to the Andean

highlands, where it is used for protection from the harsh cold of the

highlands. Usually accompanied by colored drawings. In each region,

especially in the high Andes, exist not only in variety of colors but also in its

use ranging from the everyday as identifying who holds public office or who

are single to name a few.

3. Information on the selected foreign market

Name: New Zealand - Abbreviation: NZ Citizenship: New Zealander

Capital: Wellington

Independence: 26 of September 1907 (from England)

Location: Oceania, South East from Australia Coordinates: 41 00 S, 174 00

E.

Climate: mild to cold with regional contrasts

Area: 268.680 km

Coastline: 15.134 km

Marine Claims: 12 nautical miles- economic zone inclusive: 200 nautical

miles

Terrain: predominately mountainous, coastal plain

Highest peak: Mt. Cook with 3.754 meters located in the south island.

Natural Hazards: Earthquake, Volcanic eruptions, cyclones, Tsunamis,

blizzards, landslides


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Natural Resources: Gas, Iron, sand, coal, wood, gold, thermal energy.

Population: 4 million (2005) NZ Population Clock: 4,433,983 (May 2012)1

Sex: 49.9% Males- 50.1% Females

Life Expectancy: ALL 78 years Men 76 - Woman 82

Population Growth: 1% per year

Death Rate: 7.5 / 1000 population

Median Age: 34 years

Ethnic Groups: European descendent 74.5% - Maori 9.7% - Asian 7.4% -

Pacific Islander 3.8% - Other 4.6%

Migration rate: 4 / 1000 New Zealander

Religions: Anglican 14.9%, Roman Catholic 12.4%, Presbyterian 10.9%,

Methodist 2.9%, Pentecostal 1.7%, Baptist 1.3%, other Christian 9.4%,

other 3.3%, unspecified 17.2%, none 26%

Official Languages: English and Maori.

Literacy: Above 15 years 99.9%

Adult: 18 years

Military service: From 17 years and voluntary

Government: Parliamentary Democracy

Government Leader: Prime Minister John Key, National Party ( 2008).

Legislative Powers: House of Representatives - commonly called

Parliament. 120 seats. 69 members elected by popular vote in single-

member constituencies including 7 Maori constituencies, and 51

1

Available in:http://www.oficinascomerciales.es/icex/cma/contentTypes/common/records/mostrarDocumento/0,,,0

0.bin?doc=4495694


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proportional seats chosen from party lists, all to serve three-year terms.

Voting is voluntary. .

Political Parties: ACT New Zealand - Green Party - National Party - New

Zealand First Party - New Zealand Labour Party - Progressive Coalition -United Future

Divisions: There are no states but administrative regions including:

Auckland - Bay of Plenty - Canterbury - Chatham Islands (Considered a

territory) - Gisborne - Hawke's Bay - Manawatu and Wanganui -

Marlborough - Nelson - Northland - Otago - Southland - Taranaki - Tasman

- Waikato - Wellington - West Coast

National Days: 6 of February - Waitangi Day. The Waitangi Treaty was

established on 6 of February 1840, and it marks the beginning of the New

Zealand liberation from Britain

International Agreements: Kyoto Protocol - Ozone Layer Protection -

Environmental Protocol - Marine Living Resources - Antarctic Treaty -

Biodiversity - Desertification - Endangered Species - Environmental

Modification - Hazardous Wastes - Law of the Sea - Marine Dumping -

Ship Pollution - Tropical Timber - Whaling

Economy: Export of industrial and agricultural products. Growth in the

technologic sector. Tourism has a large contribution to national income,

with New Zealand being considered the world capital for Extreme sports.

GDP: US$ 162.066

GDP per Capita: US$ 36.771 per year (2011)

Income: average week NZ$ 538

Work Force: 2 million

Population below poverty line: 0

Inflation rate: 2.4% per year

Interest rates: 4.6% per year


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Unemployment rate: 6.7%

Currency and exchange rate New Zealand dollar 1 NZD = 0.8125 U.S. $ =

0.6162 (3 May, 2012)

4. Study situation: the target market

4.1 Economic

New Zealand's economy historically has been based on a foundation of

exports from its very efficient agricultural system. Leading agricultural

exports include dairy products, meat, forest products, fruit and

vegetables, fish, and wool.

The country has substantial hydroelectric power and reserves of natural

gas. Based on recent natural gas exploration between Australia and

New Zealand, natural gas production is projected to increase by 3.5%

by 2020. Leading manufacturing sectors are food processing, wood and

paper products, and metal fabrication. Service industries, particularly

financial, insurance, and business services, form a significant part of

New Zealand's economy. As of July 2011, the number of broadband

subscribers continued to grow, and exceeded 1.5 million. The number

of broadband subscribers made up 85% of all Internet subscribers.

Since 1984, government subsidies including for agriculture were

eliminated; import regulations liberalized; tariffs unilaterally slashed;

exchange rates freely floated; controls on interest rates, wages, and

prices removed; and marginal rates of taxation reduced. Tight monetary

policy and major efforts to reduce the government budget deficit

brought the inflation rate down from an annual rate of more than 18% in

1987. The restructuring and sale of government-owned enterprises in

the 1990s reduced government's role in the economy and permitted the

retirement of some public debt. As a result, New Zealand is now one of

the most open economies in the world.

After five consecutive quarters of economic retrenchment, the New

Zealand economy ended its recession in the June 2009 quarter,growing by less than 0.1%. Another brief return to negative growth in


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September 2010 followed a first earthquake in the Canterbury region,

and a sluggish recovery was further hampered by a second earthquake

in February 2011. Economic growth is forecast to remain weak for the

next 2 years as households go through a period of debt consolidation

and government spending is further cut. New Zealands AA+ foreign

currency rating was downgraded to AA by Standard & Poors in

September 2011 as a result of increasing net foreign liabilities and

household debt being an average 156% of disposable income.

Economic activity has been increasing, with a rise in GDP of 1.8%

recorded in September 2011. An export-led recovery is expected to

lead to growth of around 2.7% in 2012, with partial sales of some state

assets, reconstruction in Canterbury, and increased mineral

exploitation. The hosting of the 2011 Rugby World Cup provided a

short-term boost to the economy, but it has been difficult to quantify net

benefits and long-term gains. New Zealand's unemployment rate rose

to 7.3% in the last 3 months of 2009, its highest level in more than 10

years. The countrys unemployment rate as of June 2011 stood at

approximately 6.5%. New Zealand's unemployment rate was lower than

the Organization for Economic Cooperation and Development (OECD)

average of 8.6% and was ranked 12th of 27 OECD countries withstandardized unemployment rates.

New Zealand experienced a net migration loss in 2011, through the

highest-ever recorded net permanent and long-term (PLT) loss to

Australia of 36,900 people. This was offset by 14,200 arrivals from

Australia, and net gains were experienced from most other countries,

led by the United Kingdom (5,500), India (4,900), and China (4,700). In

late 2011 the United States saw gains in short-term visitors from NewZealand, up 1,500 over the previous year, an increase of 55%. Short-

term visitors from the United States were down 2.6% in the year to

December 2011, with 184,714 visitors over that period. The largest

sources of visitors over the year to December 2011 were from Australia,

the United Kingdom, the United States, China, Japan, and Germany.

The most popular destinations in the same year for New Zealanders

were Australia, the United States, Fiji, the United Kingdom, China, the

Cook Islands, and Samoa.


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Traditionally, New Zealand's economy has been helped by strong

economic relations with Australia. New Zealand and Australia are

partners in "Closer Economic Relations" (CER), which allows for free

trade in goods and most services. Since 1990, CER has created a

single market of more than 22 million people, and this has provided new

opportunities for New Zealand exporters. Australia is now the

destination of 23% of New Zealand's exports, compared to 14% in

1983. Both sides also have agreed to consider extending CER to

product standardization and taxation policy. New Zealand has had a

free trade agreement with Singapore since 2001. In July 2005, both

countries joined with Chile and Brunei to form a Trans-Pacific Strategic

Economic Partnership (TPP), liberalizing trade in goods and services

between them. On September 22, 2008, comprehensive negotiations

for the U.S. to join the TPP were launched. In December 2009,

President Barack Obama announced that the U.S. was interested in re-

engaging on TPP. The 11th round of talks took place in March 2012.

New Zealand concluded a Closer Economic Partnership (CEP)

agreement with Thailand that entered into force on July 1, 2005. In April

2008 New Zealand concluded a free trade agreement (FTA) with China.In October 2009, negotiations concluded on an FTA with the Gulf

Cooperation Council (GCC--made up of Bahrain, Oman, Kuwait, Saudi

Arabia, the U.A.E., and Qatar). The New Zealand/Hong Kong, China

CEP was concluded in November 2009, and the agreement came into

force in January 2011. In December 2007, New Zealand and South

Korea announced the beginning of a study group to explore the benefits

of a bilateral free trade agreement. The first round of FTA negotiations

between New Zealand and South Korea took place in Seoul in June2009. In June 2008, New Zealand and Japan established an economic

working group to review their bilateral economic relationship. New

Zealand and India agreed to undertake a joint study into the

implications of an FTA in 2007. That study was completed in February

2009, and in January 2010 the two governments announced that

negotiations would commence between their countries. Following a visit

to India by Prime Minister Key in June 2011, both countries expressed a

desire for an early conclusion to the deal. In August 2010 an FTA cameinto force between New Zealand and Malaysia. New Zealand, Russia,


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Belarus, and Kazakhstan began talks on an FTA in February 2011, with

a second round in April 2011; they aimed to complete negotiations by

the end of the year, although this did not occur.

New Zealand's top six trading partners (total trade) as of December

2011 included Australia, the People's Republic of China, the United

States, Japan, the United Kingdom, and the Republic of Korea. In 2011,

Australia was New Zealand's principal export market, totaling U.S.

$8.94 billion, and making up 23% of New Zealand's total exports. China

continued its rapid growth as New Zealands second-largest export

market at 12.5% of total exports, up 22% from 2010 with a total of U.S.

$4.87 billion. Despite having slipped to third place in 2010, the United

States gained on previous years in 2011 with a 6.4% increase, totaling

U.S. $3.31 billion, and making up 8.4% of New Zealand's total exports.

As New Zealand's fourth-largest export destination, export trade with

Japan was valued at U.S. $2.5 billion. China became New Zealands

largest source of imports in the year ended December 2011, with a

value of U.S. $6.2 billion, or 16% of total imports. Australia slipped from

first place as the largest source of merchandise imports in 2011,

dropping 4.1% to U.S. $6.1 billion, accounting for 15.8% of totalimports. The United States is the third-largest trading partner for New

Zealand, with U.S. goods and services accounting for 10.2% of all

imports, totaling U.S. $3.9 billion.

The New Zealand dollar reached a 24-year high of over U.S. $0.88 in

August 2011 (the highest since the New Zealand dollar was floated),

and has remained high for some months, which has seen added

pressure on New Zealand exports. The market-led economy offersmany benefits for U.S. exporters and investors. Investment

opportunities exist in chemicals, food preparation, finance, tourism, and

forest products, as well as in franchising. The best sales and investment

prospects are for whole aircraft and aircraft parts, medical or veterinary

instruments, motor vehicles, information technology, hotel and

restaurant equipment, telecommunications, tourism, franchising, food

processing and packaging, and medical equipment. On the agricultural

side, the best prospects are for fresh fruit, snack foods, and soybeanmeal.


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New Zealand screens foreign investment that falls within certain criteria.

Under the auspices of the Overseas Investment Act 2005, New

Zealands Overseas Investment Office (OIO) screens foreign

investments that would result in the acquisition of 25% or more

ownership of, or a controlling interest in, significant business assets

(significant business assets are defined as assets valued at more than

NZ $100 million). Government approval also is required for purchases

of land larger than 5 hectares (12.35 acres) and land in certain sensitive

or protected areas, or fishing quotas. If the land or fishing quota to be

purchased is owned by a company or other entity, approval will be

required if the investor will be acquiring a 25% or more equity or

controlling interest. Following a ministerial directive in December 2010,

future bids to purchase sensitive or protected areas will come under

even greater scrutiny to ensure that any investment is of economic

benefit to New Zealand. Full remittance of profits and capital is

permitted through normal banking channels.

A number of U.S. companies have subsidiary branches in New

Zealand. Many operate through local agents, and some are inassociation in joint ventures. The American Chamber of Commerce is

active in New Zealand, with its main office in Auckland.

4.2 Legal

The New Zealand legal system is derived from the English one and

comes from two main sources:

The common law, which is a body of law built up from decisions madein the United Kingdom and in New Zealand. Developments made by

New Zealand courts mean that New Zealand now differs from the

United Kingdom on some aspects of the common law.

Statute law, which is all the law made by Parliament.

An integral feature of our system is the separation of power among

three different branches of government. The division of power seeks to

ensure that no one branch can act unconstitutionally. Although eachbranch has a different role, the separation is not absolute.


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The Legislature

New Zealand's Parliament has developed from the British parliamentary

system known as the Westminster system of government and is the

highest law-making body in New Zealand.

Parliament has two parts:

1. The Head of State of New Zealand (Queen Elizabeth II) who is

represented by the Governor-General.

The Governor-General is appointed by the Sovereign on the Prime

Minister's recommendation for a term of five years.

The Governor-General exercises the Queen's royal powers (prerogative

powers) which are found in the Letters Patent 1983. The Governor-

General's main constitutional function is to invite the Leader of the

majority party to form a government. The Governor-General is also able

to make regulations and his or her assent is required for all Bills passed

by the House of Representatives before they can become law. He or

she also holds the figurehead position of Commander-in-Chief of the

armed forces.The Governor-General is required by constitutional convention to follow

the advice of ministers. This means the Governor-General does what

the Government advises him or her to do. Although there could be

situations where the Governor-General could be required to exercise

independent judgement, this has not happened for a long time.

2. The House of Representatives

The New Zealand Parliament has one chamber, called the House ofRepresentatives. The second chamber, known as the Legislative

Council, was abolished in 1951.

One hundred and twenty Members of Parliament (MPs) are elected to

the House of Representatives for a three year term. They meet in the

Parliamentary Buildings in Wellington. New Zealanders aged 18 years

and over, elect the Members of Parliament by voting in elections. This is

how New Zealanders have a say in who runs the country.

The House's responsibilities are to debate and pass legislation, providea Government, supervise the Government's administration by requiring


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it to explain policies and actions, supply money, and represent the

views of the people of New Zealand. It has a number of Select

Committees which examine proposed legislation (Bills) in detail, often

hearing submissions from interested members of the public.

The Executive

The Executive is made up of the Prime Minister, Cabinet and the public

sector. The Executive conducts the Government, deciding on policy and

administering legislation.

All important Government policy decisions and legislative proposals

either come from or are agreed to by Cabinet. Cabinet also co-ordinates

the work of Ministers. Cabinet consists of Ministers who are members of

the governing party or parties in Parliament and is presided over by the

Prime Minister. Usually each Cabinet Minister is responsible for one or

more government departments, but there can be Ministers "without

portfolio", who do not have permanent responsibility for any

department. Cabinet, like Parliament, has committees that examine

specific subjects in detail. Cabinet Ministers are advised by public

servants.

Although it has great power, Cabinet is not a body established bystatute. Its power comes from long-recognised convention. In contrast,

the Executive Council, which is formally constituted, does not have the

power to make policy decisions. It gives legal effect to decisions made

elsewhere, eg regulations, Orders and Notices. The Executive Council

is presided over by the Governor-General and in practice the other

members are the Cabinet of the day.

The JudiciaryThe independence of the judiciary is an important principle of the New

Zealand constitution, so freedom from political interference is an

essential feature of the judiciary's position. This reflected in the standing

orders of the House of Representatives (their rules) which prohibit

members from criticising a judge.

A judgement may be criticised but personal attacks on or attempts to

influence a judge are not allowed, and could put the people concerned

in contempt of court. If an MP does not like the decision reached in a


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case, the proper course is to introduce a Bill to change the law in

question.

It is the Judges' role to apply the law to every case that comes before

the Court. Judges, however, also develop the law by deciding what

legislation passed by Parliament means by interpreting it. A growing

area of the Judiciary's work is judicial review, examining the acts of

government and private administrative bodies to see whether they

acted fairly and within their powers.

Judges are appointed by the Governor-General. All judges are lawyers

with at least seven years experience.

New Zealand's Constitution

A constitution is central to a country's legal system because it defines

the principles on which the system is based. It sets up the most

important institutions of government, states their principal powers and

makes broad rules about how those powers can be used. In some

countries the constitution is written down in one place and that

document is called the constitution.

New Zealand's constitution, which is the foundation of our legal system,is drawn from a number of important statutes, judicial decisions, and

customary rules known as constitutional conventions.

New Zealand does not have a single written constitution. New

Zealand's constitutional arrangements can be found in a number of key

documents. These, together with New Zealand's constitutional

conventions, form the nation's constitution. Key written sources include

the Constitution Act 1986, the New Zealand Bill Of Rights Act 1990, the

Electoral Act 1993, the Treaty of Waitangi and the Standing Orders ofthe House of Representatives. Aspects of the constitution are also

found in United Kingdom and other New Zealand legislation, judgments

of the courts, and broad constitutional principles and conventions.

Constitutional Conventions

Constitutional conventions are rules that have become established by

frequent use and custom. Conventions are an important part of the

relationships between and within the legislature and the executive.Although some conventions have been put into statutes, most of them


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are not enforceable laws. Their continued existence depends on people

respecting and obeying them. An example of a constitutional convention

is that the Governor-General acts on the advice of his or her ministers.

The Rule of Law

The rule of law also forms a significant part of the New Zealand

constitution. The principles of the rule of law are not easily defined, but

encompass ideas such as:

The powers exercised by parliamentarians and officials are based on

legal authority; there are minimum standards of justice to which the law

must conform, eg laws affecting individual liberty should be reasonably

certain and clear; the law should have safeguards against the abuse of

wide discretionary powers; unfair discrimination should not be allowed

by the law; a person should not be deprived of his or her liberty, status

or other substantial interest without the opportunity of a fair hearing

before an impartial court or tribunal.

The Treaty of Waitangi

The Treaty of Waitangi was signed in 1840, as an agreement betweenthe British Crown and a large number of the Maori of New Zealand.

Today the Treaty is widely accepted to be a constitutional document,

which establishes and guides relationships between the Crown in New

Zealand (as embodied by our government) and Maori. The Treaty of

Waitangi had at its heart a promise to protect a living Maori culture; to

enable Maori to continue to live in New Zealand as Maori, while at the

same time conferring on the Crown the right to govern in the interests of

all New Zealanders. This means that the Treaty relationships betweenthe Government and Maori are ongoing and dynamic.

The status of the Treaty in New Zealand law is, however, less than

settled. The orthodox view is that where legislation makes no reference

to the Treaty, then Treaty rights are unenforceable. Where the Treaty is

referred to expressly in statute, the current approach of the courts has

been to give effect to the reference. There are a number of statutes

which contain references of this type.

There is also evolving jurisprudence to suggest that where relevant,Treaty principles could guide the actions of executive government and


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permeate domestic statutes without express incorporation. In addition,

New Zealand is to some degree under an international obligation to

maintain some of the rights ascribed to the Treaty, as Parliament has

incorporated into domestic law the International Covenant on Civil and

Political Rights which upholds the individual and group rights of

minorities. Article III Treaty of Waitangi rights (the right to equality

before the law) are largely protected under the New Zealand Bill of

Rights Act and Human Rights Act.

Although there are limits on the extent to which Treaty rights can be

argued in the courts system, as indicated above, the Waitangi Tribunal

provides a forum for the hearing of historical and contemporary

grievances regarding breaches of the Treaty of Waitangi. Under the

Treaty of Waitangi Act 1975, any Maori may take a claim to the Tribunal

that he or she (or the group to which he or she belongs) has been

prejudicially affected by any legislation, policy or practice of the Crown

since 1840. The Tribunal has the power to make recommendations to

the Government. These recommendations are non-binding except in

relation to particular assets, including forestry assets and other assets,

owned or formerly owned by State Owned Enterprises and certain other

state institutions.The main means through which claims concerning historical breaches

of the Treaty are settled is by direct negotiation with the Crown (through

the Office of Treaty Settlements). This often occurs after the Waitangi

Tribunal has issued a report on the grievance.

The Electoral System

The 1996 general election was the first held in New Zealand under the

mixed member proportional system (MMP). Under the MMP systemvoters have two votes; a party vote and an electorate vote. Voters can

choose what party they want in Parliament with their party vote and

which person they want to represent their electorate with their

electorate vote.

New Zealand is divided geographically into 61 general electorates and

6 Maori ones. There are also 53 seats for list MPs. The number of

general electorates changes as the population changes. All voters live

in an electoral area and vote in that same area. People of Maoridescent can choose whether to be on the Maori or general electoral


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rolls. The Maori seats can change as the number of Maori voters on the

Maori roll changes.

The Electoral Act 1993, which sets out the way the New Zealand

electoral system works, is the only statute in New Zealand with

entrenched provisions. Being "entrenched" means that if certain

changes to the Electoral Act are to be made, for example the length of

the Parliamentary term, they must be passed by either:

75 percent of MPs; or a majority vote in a referendum of all voters on

the electoral rolls.

Usually a simple majority (51 percent) of MPs is all that is required to

make changes to an Act.

The New Zealand Bill of Rights Act 1990

The New Zealand Bill of Rights Act 1990 safeguards the civil and

political rights of New Zealanders.

The Act protects the following categories of rights and freedoms: life

and security of the person; democratic and civil rights; non-

discrimination and minority rights; search, arrest and detention; criminal

procedure; and right to justice.

The Act is not higher law and does not "override" other laws, but it doesnevertheless provide protection for the rights in it. The Courts must

interpret other laws consistently with the Bill of Rights Act if at all

possible. Further, all bills are assessed for consistency with the Bill of

Rights Act before they are introduced into Parliament. Where there is

an inconsistency in a bill, the Attorney-General must inform Parliament.

While this does not prevent Parliament passing inconsistent laws, it

does ensure that any issues are fully debated.

The Human Rights Act 1993

The Human Rights Act 1993 is aimed at giving all people equal

opportunities and preventing unfair treatment on the basis of irrelevant

personal characteristics. The Human Rights Act covers discrimination

on the grounds of sex, marital status, religious belief, ethical belief,

colour, race, ethnic or national origins, disability, age, political opinion,

employment status, family status, and sexual orientation. It is unlawful

to discriminate on these grounds in the following areas of public life:employment, education, access to public places, provision of goods and


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services, and housing and accommodation. People who think they have

been discriminated against may complain to the Human Rights

Commission.

GENERAL LEGAL SYSTEM INFORMATION

Civil and Criminal Law

There are two main divisions of law - civil law and criminal law.

Civil law covers disputes between individuals, companies and

sometimes local or central government, and usually doesn't involve of

the police. The disputes usually involve money, with a wide range of

cases coming before the courts -disputes over business contracts, wills,

tax, land or other property; cases where negligence has caused

another's loss; and family matters such as custody of children and

division of matrimonial property. Many civil cases are settled without a

court hearing being needed -all parties agree on a solution, usually after

negotiations by the parties' lawyers. In a civil case, the plaintiff (the

person who brings the action or "sues") must prove their case to the

balance of probabilities -it must be more likely than not that the

plaintiff's version of events is correct.

Criminal law has a high profile as it usually involves the policeinvestigating crimes eg theft, murder, and trials which are often reported

by the news media. The accused has the right to be represented by a

lawyer and to have the evidence against him or her heard in an open

court (open to the public) and tested by cross-examination. The offence

must be proved beyond reasonable doubt. If convicted of a crime, a

person will be sentenced in accordance with the law, and has a right to

appeal against conviction and sentence.

Criminal prosecutions are usually brought by the police but are alsobrought by others, for example, the Ministry of Transport, Department of

Inland Revenue and Local Authorities.

Court Proceedings

In the District Court and High Court the Judge sits alone or with a jury.

A jury is made of 12 ordinary people selected at random from the jury

roll (which is based on the electoral roll), and its role is to decide

questions of fact. Various laws say when there has to be a jury, and


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when there is a choice to have one or not. Questions of law are decided

by the Judge, who also directs the jury on the law where necessary.

In New Zealand courts the adversary system is usually used to

determine issues. In this system, the Judge generally plays the role of a

neutral referee while each party presents evidence and arguments (on

the facts and on the law) in support of its own case. Rules of evidence

determine what can and cannot be presented to the court. These rules

are aimed at ensuring a fair trial of hearing for each party. The verdict

(decision on the case) is given after all evidence and arguments have

been presented. Where a person is tried without a jury, the verdict is

given by the Judge.

An inquisitorial system similar to that used, for example, in France is

used to a certain extent in administrative tribunals and commissions of

inquiry. In this system the judge or person in charge takes a more active

role, asking questions and in general the proceedings take the form of

an investigation rather than a trial.

Legal Profession

In the New Zealand legal profession most lawyers are both barristers

and solicitors. This means they are able to appear in court and dealdirectly with the public. A small number are barristers only ("barristers

sole") who have chosen to specialise in arguing cases in court.

Barristers in general do not deal directly with members of the public,

and instead clients are referred to them by solicitors.

Legal Aid

A government funded Legal Aid scheme enables those who cannot

afford legal representation to be represented by lawyers in both civiland criminal cases.2

4.3 Political

The traditionally conservative National Party and left-leaning Labour

Party have dominated New Zealand political life since a Labour

government came to power in 1935. During its first 14 years in office,

the Labour Party implemented a broad array of social and economic

2http://www.justice.govt.nz/publications/global-publications/t/the-new-zealand-legal-system


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legislation, including comprehensive social security, a large-scale public

works program, a 40-hour workweek, a minimum basic wage, and

compulsory unionism. The National Party won control of the

government in 1949 and adopted many welfare measures instituted by

the Labour Party. Except for two brief periods of Labour governments in

1957-60 and 1972-75, National held power until 1984. After regaining

control in 1984, the Labour government instituted a series of radical

market-oriented reforms in response to New Zealand's mounting

external debt. It also enacted anti-nuclear legislation that effectively

brought about New Zealand's suspension from the ANZUS security

alliance with the United States and Australia.

In October 1990, the National Party again formed the government, for

the first of three 3-year terms. In 1996, New Zealand inaugurated a

mixed-member proportional (MMP) system to elect its parliament. The

system was designed to increase representation of smaller parties in

parliament and appears to have done so in the MMP elections to date.

Since 1996, neither the National nor the Labour Party has had an

absolute majority in parliament, and for all but one of those years, the

government has been a minority one. The Labour Party won electionsin November 1999 and again in July 2002. In 2002 Labour formed a

coalition, minority government with the Progressive Coalition, a left-wing

party holding two seats in parliament. The government relied on support

from the centrist United Future Party to pass legislation.

Following a narrow victory in the September 2005 general elections,

Labour formed a coalition with the one-seat Progressive Party. The

government also entered into limited support agreements with theUnited Future New Zealand and NZ First Parties, whose leaders were

respectively given the Revenue and Foreign Affairs ministerial positions

outside of the cabinet. This gave Labour an effective one-seat majority

with which to pass legislation in parliament. Labour also secured an

assurance from the Green Party that it would abstain from a vote of

confidence against the government. The 2005 elections saw the new

Maori Party win four out of the seven reserved Maori seats. The

additional seat in the 121-member parliament was the result of anoverhang from 2005 elections. There were two independent members


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On December 5, 2011, National re-entered into agreements with ACT

and United Future and with the Maori Party to form a minority

government with a seven-seat majority (64 seats to 57). The

governments priorities for this term are managing the governments

finances, building a more productive and competitive economy,

delivering better public services, and rebuilding Christchurch. The 50th

New Zealand parliament was sworn in on December 20, 2011 with 121

members (120 seats plus one overhang seat).3

4.4 Cultural

The culture of New Zealand is largely inherited from British and

European custom, interwoven with Maori and Polynesian tradition. An

isolated Pacific Island nation, New Zealand was comparatively recently

settled by humans. Initially Mori only, then bicultural with colonial and

rural values, now New Zealand is a cosmopolitan culture that reflects

its changing demographics, is conscious of the natural environment,

and is an educated, developed Western society.

Mori culture has predominated for most of New Zealand's history of

human habitation. Morivoyagers reached the islands of New Zealandsome time before 1300, though exact dates are uncertain. Over the

ensuing centuries of Mori expansion and settlement, Mori culture

diverged from its Polynesian roots. Mori established separate tribes,

built fortified villages (P), hunted and fished, traded commodities,

developed agriculture, arts and weaponry, and kept a detailed oral

history. Regular European contact began approximately 200 years

ago, and British immigration proceeded rapidly during the nineteenth

century.

The colonists had a dramatic effect on the indigenous Maori, bringing

religion, technology, and the English language. In 1840 Mori leaders

signed the Treaty of Waitangi, intended to enable the tribes to live

peacefully with the colonists. However after several incidents, the

treaty was ignored and the New Zealand land wars broke out from

1845, with Mori suffering a loss of land and identity, while also

3http://www.state.gov/r/pa/ei/bgn/35852.htm
http://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Politics_of_New_Zealandhttp://en.wikipedia.org/wiki/Geography_of_New_Zealandhttp://en.wikipedia.org/wiki/History_of_New_Zealandhttp://en.wikipedia.org/wiki/History_of_New_Zealandhttp://en.wikipedia.org/wiki/Demographics_of_New_Zealandhttp://en.wikipedia.org/wiki/Environment_of_New_Zealandhttp://en.wikipedia.org/wiki/M%C4%81ori_peoplehttp://en.wikipedia.org/wiki/M%C4%81ori_peoplehttp://en.wikipedia.org/wiki/Kupehttp://en.wikipedia.org/wiki/Kupehttp://en.wikipedia.org/wiki/M%C4%81ori_culturehttp://en.wikipedia.org/wiki/M%C4%81ori_culturehttp://en.wikipedia.org/wiki/Polynesiahttp://en.wikipedia.org/wiki/P%C4%81http://en.wikipedia.org/wiki/P%C4%81http://en.wikipedia.org/wiki/P%C4%81http://en.wikipedia.org/wiki/Great_Britainhttp://en.wikipedia.org/wiki/Religion_in_New_Zealandhttp://en.wikipedia.org/wiki/New_Zealand_Englishhttp://en.wikipedia.org/wiki/New_Zealand_Englishhttp://en.wikipedia.org/wiki/Treaty_of_Waitangihttp://en.wikipedia.org/wiki/New_Zealand_land_warshttp://en.wikipedia.org/wiki/New_Zealand_land_warshttp://en.wikipedia.org/wiki/Treaty_of_Waitangihttp://en.wikipedia.org/wiki/New_Zealand_Englishhttp://en.wikipedia.org/wiki/Religion_in_New_Zealandhttp://en.wikipedia.org/wiki/Great_Britainhttp://en.wikipedia.org/wiki/P%C4%81http://en.wikipedia.org/wiki/Polynesiahttp://en.wikipedia.org/wiki/M%C4%81ori_culturehttp://en.wikipedia.org/wiki/Kupehttp://en.wikipedia.org/wiki/M%C4%81ori_peoplehttp://en.wikipedia.org/wiki/Environment_of_New_Zealandhttp://en.wikipedia.org/wiki/Demographics_of_New_Zealandhttp://en.wikipedia.org/wiki/History_of_New_Zealandhttp://en.wikipedia.org/wiki/Geography_of_New_Zealandhttp://en.wikipedia.org/wiki/Politics_of_New_Zealandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/New_Zealand


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increasingly becoming a minority group over the following century.

Despite such setbacks, Mori culture has regained much of its lost

influence in recent decades.

European New Zealanders (Pkeh), despite their location far fromEurope, retained strong cultural ties to "Mother England." These ties

were weakened by the demise of the British Empire and loss of special

access to British meat and dairy markets. Pkeh began to forge a

separate identity influenced by their pioneering history, a rural lifestyle

and New Zealand's unique environment. Pkeh culture became

prevalent after the land wars, but after sustained political efforts,

biculturalism and the Treaty of Waitangi became part of the school

curriculum in the late 20th century, to promote understanding between

Mori and Pkeh.

More recently, New Zealand culture has been broadened by

globalization and immigration from the Pacific Islands, East Asia and

South Asia. European and Mori remain the two largest ethnicities, but

the large Polynesian population in Auckland has prompted the

observation that Auckland is now the largest Polynesian city in the

world. However, the country outside of Auckland is still much lessheterogeneous, with big parts of the South Island remaining

predominantly of European descent.

New Zealand marks two national days of remembrance, Waitangi Day

and ANZAC Day, and also celebrates holidays during or close to the

anniversaries of the founding dates of each province. The national

anthem, "God Defend New Zealand" is often sung with alternating

Mori and English verses. Many citizens prefer to minimise ethnic

divisions, simply calling themselves New Zealanders or Kiwis.

4.5 Social

Is very egalitarian. All are seen in the same way and respected the

same way, no matter the skin color, religion, social status, sexual

orientation, or political ideologies. Whenever there is no discrimination

and uphold the law, any visitor or new resident will be welcomed to thecountry, and will be well treated. The social system is based on the
http://en.wikipedia.org/wiki/New_Zealand_Europeanhttp://en.wikipedia.org/wiki/P%C4%81keh%C4%81http://en.wikipedia.org/wiki/P%C4%81keh%C4%81http://en.wikipedia.org/wiki/P%C4%81keh%C4%81http://en.wikipedia.org/wiki/History_of_New_Zealandhttp://en.wikipedia.org/wiki/Treaty_of_Waitangihttp://en.wikipedia.org/wiki/Pacific_Islandshttp://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Polynesiahttp://en.wikipedia.org/wiki/Aucklandhttp://en.wikipedia.org/wiki/Waitangi_Dayhttp://en.wikipedia.org/wiki/ANZAC_Dayhttp://en.wikipedia.org/wiki/God_Defend_New_Zealandhttp://en.wikipedia.org/wiki/Kiwi_%28people%29http://en.wikipedia.org/wiki/Kiwi_%28people%29http://en.wikipedia.org/wiki/God_Defend_New_Zealandhttp://en.wikipedia.org/wiki/ANZAC_Dayhttp://en.wikipedia.org/wiki/Waitangi_Dayhttp://en.wikipedia.org/wiki/Aucklandhttp://en.wikipedia.org/wiki/Polynesiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/East_Asiahttp://en.wikipedia.org/wiki/Pacific_Islandshttp://en.wikipedia.org/wiki/Treaty_of_Waitangihttp://en.wikipedia.org/wiki/History_of_New_Zealandhttp://en.wikipedia.org/wiki/P%C4%81keh%C4%81http://en.wikipedia.org/wiki/New_Zealand_European


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family, and improve the situation to study and work. What a person

does or how much you earn, no matter in how to be treated or treat

others. All are equal before the law, and have the same rights and

obligations. In this country, humans are respected film speak to 100%.

5. Target market segmentation, positioning

6. Process of selection of markets

7. Strategies of international market entry I

Exports can be sporadic, regular indirect or direct regular. Sporadic exports

are related to those that have been made in certain situations, without

intending to have a continuity in that market.

Indirect regular exports: are a way to penetrate foreign markets without

direct involvement in the complexities of export. This delegated financial

risks to the distributor, so the producer is substantially free of obstacles and

risks of negotiating sales. But the problem is to form a screen between

customer and manufacturer and dealer's hands delegate pricing, choice of

buyers, sales promotion and customer service.

Among the options that do not require direct investment, are.

License: It consists of contractual arrangements through which companies

transfer their intangible assets to other foreign companies in exchange for

royalties or other payment. These licenses may constitute assignment of

patent rights, licenses or manufacturing marks or transmission of know-how

or expertise.

International franchising: a company standardizes a way to work or other

use rights granted to a company or an independent person for a fee. When

performing a franchise agreement, it has to play all the business granted by

the company and the whole system of distribution, marketing, purchase of

materials and production taxes and controlled by the original company.

Franchises are differences in the license by the greater emphasis on controlover the operations of the company that is granted. Normally these


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contracts are binding to mature, which upon reaching maturity must decide

whether to extend or not. For this type of business, companies that grant

franchises should provide continuous support to the franchisee.

Its advantage lies in enabling a rapid expansion in a foreign market with low

capital investment, as well as to operate in a foreign market when there is

familiarity with the laws and mechanisms of the market, however limited

benefits the company that is granted.

Production contract: This is an intermediate strategy between the license

and investment as input mode. The advantages are that resides only a

small commitment of financial resources and management. Represents a

rapid entry to foreign markets, enabling the international company having

control over the marketing and after sales services. It is ideal for markets

too small to justify an investment as input and exports are blocked or simply

too expensive. It has the disadvantages of the difficulty of finding a local

producer at the desired height, the possible need for great technical

assistance and risk of creating a future competitor.

Management contract: Provide low risk of market entry, but areunsatisfactory because they allow the company to build a permanent

position in the market for their products.

8. Strategies of international market entry II

On the other hand, foreign direct investment refers to investment that makes

a national company in a foreign country to produce in that country. Then we

have 3 different types of this investment.

New Investment: The national abroad creates a new plant which has the

property of the same. This means that the company transferred

management, technology, marketing, financing and other resources to

another country by setting up another business under their own control.

In this type of direct investment to reduce costs on exports as a mode of

entry into areas such as transport, marketing and production costs. The

production also could benefit if the target country had some sort of barrier

to the importation of foreign products.


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The main advantages over production in direct investment abroad without

lies the greatest opportunities to adapt the product to local tastes. But there

are also disadvantages of a greater commitment of resources, more

information about macro and micro factors and the high initial costs with the

consequent difficulty of disinvestment in case of failure.

Acquisition: It is done through the purchase of a company already

created. Has potential advantages over the new investment, rapid

exploitation of foreign market, since the company already has products on

the market and customers in its portfolio, and possession of managers and

staff who understand the market characteristics. The disadvantages could

say that locate and evaluate potential candidates could be an extremely

difficult task, as it can create problems with government policy not to allowwilling local companies are held by foreign investors.

Joint Ventures: They occur when an international company involved in the

ownership of a company in a target country. These can be classified as

majority, minority or fifty to fifty. Despite having less control than being the

sole shareholder of the company, resulting in advantages of local partner

contributions as local capital, knowledge of the environment, business

practices in the country, personal contacts with consumers, banks andothers. They are usually performed most commonly by small multinationals

looking to share risk and information, also often occur in cases where the

investment is planned to make a somewhat unknown country

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