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SOUTH PACIFIC BUSINESS ENVIRONMENT MBA 434 - 2013

MBA 434: South Pacific Business Environment - 2013

Paula

Avinesh

Gaythri

Vinita

Tuesday 5pmGROUP

MBA 434: South Pacific Business Environment - 2013AGENDA

COUNTRY PROFILE ECONOMIC OVERVIEW EXPORTS / IMPORTS TOURISM TRADING PARTNERS BUSINESS DEVELOPMENT POLICY GLOBAL FINANCIAL CRISIS BUSINESS ENVIRONMENT INVESTMENT EASE OF DOING BUSINESS BUSINESS CHALLENGES RECOMMENDATIONS CONCLUSION REFERENCE

Māori nameCapitalLargest city Population Area Currency Geography

AotearoaWellingtonAuckland4,242,048269,652 sq kmNew Zealand dollarNorth & South Islands

COUNTRY PROFILE

GovernmentUnitary parliamentary constitutional

Monarch QueenElizabeth II

Governor-General Sir JerryMateparae

COUNTRY PROFILE

Prime Minister John Key

ETHNIC GROUPS

67%

15%

10%7%

1%

European / other

Māori

Asian

Pacific peoples

Middle Eastern Latin-American, African

Official Languages

95.9% English4.2% Māori0.6% NZ Sign Language

NZ Cities Population2013

Auckland 1,397,300Wellington 395,600

Christchurch 375,900

Hamilton 209,300

Napier-Hastings 125,000

Tauranga 122,200Dunedin 118,400

Palmerston North 83,300

Nelson 61,100Rotorua 56,100

New Plymouth 53,000

Whangarei 52,500Invercargill 49,000

Whanganui 39,500

Gisborne 34,40

CLIMATECool temperate to warm temperate with a strong maritime influence

Snow - South Island and southern parts of the North Island

Maximum temperatures are normally in the mid to low 20 (°C) over most of the country.

INFRASTRUCTURE energy from renewable energy, primarily

hydroelectric power and geothermal power

Bus services

private car

Railways

Six international airports

Telecommunications

ENTERTAINMENT & SPORTS MUSIC

blues, jazz, country, rock and roll and hip hop

SPORTS Rugby , Golf, netball, tennis and cricket

NEW

ZEALAND Open economy that works on free market principles

Very export-driven competitive economy

ECONOMIC OVERVIEW Total Year end

Nominal GDP (NZ$million) $208,688 31-Dec-2012

Nominal GDP growth 2.5 31-Dec-2012

Nominal GDP per capita (NZ$) $45,769 31-Mar-2012

Real GDP (NZ$million) $142,774 31-Dec-2012

Real GDP growth (%) 1.5% 31-Dec-2012

Real GDP per capita (NZ$) $32,341 31-Dec-2012

CPI inflation 0.9 02-Feb-2013

Unemployment rate (%) 6.6% 02-Feb-2013

Total exports (NZ$million) $48,020 31-Dec-2012

Total imports (NZ$million) $53,740 31-Dec-2012

Trade surplus/deficit (NZ$million) -5,720 31-Dec-2012

INDUSTRY BY SECTORS Accommodation

Agriculture, horticulture, and forestry

Alcohol availability

Bioscience and biotechnology

Construction

Energy

Film and television

Imports and exports

Information communications and technology

Manufacturing and production

Retail trade

Tourism

Wholesale trade

EXPORTS - COMMODITIESCommodity NZ$ millions Year end

Milk powder, butter, and cheese 12,428 31-Dec-2012

Meat and edible offal 5,167 31-Dec-2012

Logs, wood and wood articles 3,160 31-Dec-2012

Crude oil 1,790 31-Dec-2012

Mechanical machinery and equipment 1,716 31-Dec-2012

Fruit 1,563 31-Dec-2012

Fish, crustaceans and molluscs 1,382 31-Dec-2012

Wine 1,218 31-Dec-2012

Electrical machinery and equipment 1,119 31-Dec-2012

Aluminium and aluminium articles 1,042 31-Dec-2012

EXPORTS - COMMODITIESCasein and caseinates 890 31-Dec-2012

Iron and steel and articles 874 31-Dec-2012

Preparations of cereals, flour and starch 917 31-Dec-2012

Precious metals, jewellery and coins 807 31-Dec-2012

Miscellaneous edible preparations 747 31-Dec-2012

Optical, medical, and measuring equipment 721 31-Dec-2012

Wool 717 31-Dec-2012

Wood pulp and waste paper 589 31-Dec-2012

Raw hides, skins, and leather 567 31-Dec-2012

Textiles and textile articles 560 31-Dec-2012

IMPORTSMain import commodities (2012) NZ$(million)

Petroleum and products 8,366

Mechanical machinery and equipment 6,071

Vehicles, parts, and accessories 4,882

Electrical machinery and equipment(1) 3,948

Textiles and textile articles 2,116

Plastic and plastic articles 1,685

Optical, medical, and measuring equipment 1,337

Iron and steel, and articles(1) 1,247

Total – all commodities 47,451

TOURISM

International tourism expenditure contributed $9.8 billion

Domestic tourism expenditure increased 2.4 %

Generated to GDP of $7.3 billion, or 3.7 % of GDP.

Additional $9.8 billion for tourism, or 5.0 % of GDP.

Employed 110,800 full-time equivalents or 5.7 % of total

employment in New Zealand.

Tourists generated $1.3 billion in GST revenue.

NEW ZEALAND TOURISM

TOP TRADING PARTNERSCountry

Exports NZ$

(million)

Imports NZ$

(million)

Total trade NZ$ (million)

Australia 10,848 7,369 18,217

China, People's Republic of 5,887 7,439 13,326

United States of America 3,997 5,026 9,023

Japan 3,441 2,921 6,362

Korea, Republic of 1,675 1,454 3,129

Singapore 813 2,163 2,976

United Kingdom 1,545 1,267 2,812

Germany 775 1,994 2,769

Malaysia 875 1,478 2,353

Thailand 732 1,330 2,062

Total trade 47,702 46,896 94,598

NEWZEALAND BRANDS

BUSINESS DEVELOPMENT POLICYSix key policy drivers:

A growth-enhancing tax system

Better public services

Support for science, innovation and trade

Better regulation, including regulation around natural

resources

Investment in infrastructure

Improved education and skills.

THE GLOBAL FINANCIAL CRISIS

Economic slow-down in global financial crisis 2008

2% decline in 2009

Achieved 1.7% growth in 2010

2% in 2011 and 3% in 2012

CRISIS-RECOVERY

Exports, trading partners Australia and China,

Strong Government accounts

Well-capitalised banking system

The strong terms of trade and the boost to GDP

from the rebuilding of Christchurch, have led to

a solid and on-going growth.

BUSINESS ENVIRONMENT Country Risk Rating

Australia DB1d (lowest risk)Hong Kong DB2a (low risk)Singapore DB2a (low risk)

New Zealand DB2c (low risk)Japan DB2d (low risk)

South Korea DB2d (low risk)Taiwan DB2d (low risk)

Malaysia DB3b (slight risk)China DB3d (slight risk)India DB3d (slight risk)

Indonesia DB4b (moderate risk)Philippines DB4b (moderate risk)

Thailand DB4d (moderate risk)Vietnam DB5b (high risk)

Bangladesh DB5c (high risk)

New Zealand ranked fourth safest economy in Asia-pacific region for Investment

BUSINESS ENVIRONMENT

Reduced corporate income tax rate

No payroll tax

No social security tax

No capital gains tax.

low-inflation environment

Independent monetary policy

Focus on price stability

BUSINESS ENVIRONMENT New Zealand FREE TRADE AGREEMENT

China Australia Vietnam Philippines Cambodia Brunei Indonesia Hong Kong Myanmar Thailand Malaysia Laos Singapore Chile

CLEAN TECHNOLOGYNew Zealand an innovator in the development of energy, fuels, materials, and environmental technologies necessary to create a sustainable low carbon global economy

WHY INVESTMENTSafety, stability, ingenuity, and proximity to Asia's booming economies are just a few of the reasons to invest in New Zealand.

INVESTMENT ADVANTAGE

Safe and secure business environment

Ease of doing business

Cost of doing business

Simple tax system

Efficient, market-oriented economy

Access to other markets

INVESTMENT ADVANTAGEInnovative and entrepreneurial culture

Flexible immigration policies

Abundant resources

Transport and freight - world-class infrastructure

The Maori economy - Joint venture

developments

Banking - financial stability

Sophisticated telecommunications

EASE OF DOING BUSINESSTopics DB 2014

RankDB2013

RankChange in

Rank

Starting a Business 1 1 No change

Dealing with Construction Permits

12 11 -1

Getting Electricity 45 45 No change

Registering Property 2 2 No change

Getting Credit 3 3 No change

Protecting Investors 1 1 No change

Paying Taxes 23 21 -2

Trading Across Borders 21 19 -2Enforcing Contracts 18 18 No change

Resolving Insolvency 12 13 1

BUSINESS INCUBATORS

The ICEHOUSE, Auckland

E-Centre Massey, North Shore, Auckland

SODA Inc, Hamilton

The BCC, North

Creative HQ, Christchurch

Upstart , Dunedin

BUSINESS CHALLENGES

Climate Change

Global Financial Crisis

Barriers of entry

Natural Disaster (Earthquake)

High Competitive Economy

Currency rate and fluctuation

Culture and Languages

RECOMMENDATIONS

Focus on Economic development ; Export sector

Research & Development Business reallocation Evacuation Plan Innovation ecosystem Establish more Business Incubators

CONCLUSION

New Zealand is well established developed economy and has lot of business investment opportunities.

REFERENCE

• http://

www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook

• http://www.franchisingexpo.co.nz/

• http://www.nzte.govt.nz/en/invest/sectors-of-opportunity/

• http://www.newzealandnow.govt.nz/investing-in-nz/stability-security

• http

://www.forbes.com/sites/kurtbadenhausen/2012/11/14/new-zealand-top

s-list-of-the-best-countries-for-business

/

• http://www.customs.govt.nz/features/fta/pages/default.aspx

• http://data.worldbank.org/region/LDC

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SOUTH PACIFIC BUSINESS ENVIRONMENTMBA 434 - 2013

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