New Zealand New Zealand

PRESENTED BY PRESENTED BY::- -

NAME : NAME :- - SHRIKANT SHRIKANT R. R. BHOSALE BHOSALE
ROLL NO : ROLL NO :- - 77
SPECIALIZATION : SPECIALIZATION :- - FINANCE FINANCE
SUBMITTED TO SUBMITTED TO::- -
PROF PROF. SHAM . SHAM CHOUGULE CHOUGULE
apital: Wellington
Population: 4,403,000
Area:103737 sq mi (268680 sq km)
Major Languages: English & Maori
Major religions: European and
Maori
Government: Parliamentary
democracy.
Literacy rate: 99%
urrency and Economy urrency and Economy
1 New Zealand dollar = 0.5095 U.S. dollars 1 New Zealand dollar = 0.5095 U.S. dollars
Unemployment rate: 4% Unemployment rate: 4%
GDP: $112.4 Billion GDP: $112.4 Billion
GDP Per apita: $27,200 GDP Per apita: $27,200
nflation rate: 5.3 % nflation rate: 5.3 %
New Zealand's ountry Profile New Zealand's ountry Profile
0 Z0,,3/ 0 Z0,,3/ ( (Aoteaors Aoteaors in Maori) is an in Maori) is an island island
country country in the south in the south- -western western Pacific Pacific
ocean ocean comprising two main landmasses comprising two main landmasses
(the (the North island North island and the and the South island) and South island) and
numerous numerous smaller islands. t is a developed smaller islands. t is a developed
country. country.
Much of Much of New Zealand's culture New Zealand's culture is derived is derived
from Mori and early British settlers. Early from Mori and early British settlers. Early
European art was dominated by landscapes European art was dominated by landscapes
and to a lesser extent portraits of Mori. and to a lesser extent portraits of Mori.
New Zealand's History New Zealand's History
Maoris were the first inhabitants of New Zealand, Maoris were the first inhabitants of New Zealand,
arriving on the islands in about 1000. Maori oral arriving on the islands in about 1000. Maori oral
history maintains that the Maoris came to the history maintains that the Maoris came to the
island in seven canoes from other parts of island in seven canoes from other parts of
Polynesia. Polynesia.
n 1642, New Zealand was explored by Abel n 1642, New Zealand was explored by Abel
Tasman, a Dutch navigator. British captain Tasman, a Dutch navigator. British captain
James ook made three voyages to the islands, James ook made three voyages to the islands,
beginning in 1769. Britain formally annexed the beginning in 1769. Britain formally annexed the
islands in 1840. islands in 1840.
History ont. History ont.
The Treaty of Waitangi (Feb. 6, 1840) The Treaty of Waitangi (Feb. 6, 1840)
between the British and several Maori tribes between the British and several Maori tribes
promised to protect Maori land if the Maoris promised to protect Maori land if the Maoris
recognized British rule. Encroachment by recognized British rule. Encroachment by
British settlers was relentless, however, and British settlers was relentless, however, and
skirmishes between the two groups skirmishes between the two groups
intensified intensified..
Economy Economy
New New Zealand Zealand has has a a Market Market Economy Economy which which is is
greatly greatly dependent dependent on on international international trade, trade,
mainly mainly with with Australia, Australia, the the United United States States of of
America, America, hina hina and and Japan Japan..
Advantages: Advantages:
Buyers have freedom in what they buy Buyers have freedom in what they buy
Able to determine price of products Able to determine price of products
Disadvantages: Disadvantages:
More worker exploitation More worker exploitation
Overproduction of goods Overproduction of goods
urrent Economy State urrent Economy State
The The economy economy of of New New Zealand Zealand has has been been in in a a recession recession since since
2008 2008..
AA recession recession is is when when the the state state of of the the economy economy declines declines for for 2 2 or or
more more quarters quarters in in a a year year..
The The Gross Gross Domestic Domestic Product Product (GDP) (GDP) in in New New Zealand Zealand expanded expanded
0 0..10 10 percent percent in in the the second second quarter quarter of of 2011 2011 over over the the previous previous
quarter quarter.. Historically, Historically, from from 1987 1987 until until 2011 2011,, New New Zealand's Zealand's
average average quarterly quarterly GDP GDP Growth Growth was was 0 0..56 56 percent percent reaching reaching an an
historical historical high high of of 2 2..70 70 percent percent in in September September of of 1999 1999 and and a a
record record low low of of - -2 2..60 60 percent percent in in March March of of 1991 1991..
The The Gross Gross Domestic Domestic Product Product (GDP) (GDP) in in New New Zealand Zealand expanded expanded
1 1..50 50 percent percent in in the the second second quarter quarter of of 2011 2011 over over the the same same
quarter, quarter, previous previous year year..
New Zealand's Trade New Zealand's Trade
For For the the September September 2011 2011 month, month, export export values values increased increased
$ $268 268 million million compared compared with with September September 2010 2010,, while while
imports imports increased increased $ $564 564 million million.. The The trade trade balance balance for for the the
September September 2011 2011 month month was was a a deficit deficit of of $ $751 751 million million ( (22 22
percent percent of of exports) exports).. This This compares compares with with an an average average deficit deficit
of of 23 23 percent percent of of exports exports for for the the previous previous five five September September
months months..
New New Zealand's Zealand's economy economy has has traditionally traditionally been been based based on on a a
foundation foundation of of exports exports from from its its very very efficient efficient agricultural agricultural
system system:: meat, meat, dairy dairy products, products, forest forest products, products, fruit fruit and and
vegetables, vegetables, fish, fish, and and wool wool.. New New Zealand Zealand imports imports mainly mainly
machinery machinery and and equipment, equipment, vehicles vehicles and and aircraft, aircraft,
petroleum, petroleum, electronics, electronics, textiles textiles and and plastics plastics..
Domestic Trade Domestic Trade
New New Zealand Zealand has has developed developed an an open open market market economy economy
over over the the past past two two decades, decades, as as the the government government has has given given
up up control control of of many many areas areas of of domestic domestic economic economic
regulation, regulation, including including the the elimination elimination of of agriculture agriculture
subsidies subsidies and and controls controls on on prices prices and and wages wages..
The The trend trend in in retail retail establishments establishments is is moving moving from from small small
shops shops to to supermarkets supermarkets and and shopping shopping centers centers..
Automobiles Automobiles and and large large appliances appliances are are increasingly increasingly being being
sold sold on on the the installment installment (hire (hire- -purchase) purchase) plan plan.. General General and and
trade trade papers, papers, regional regional publications, publications, and and television television and and
radio radio are are used used extensively extensively as as advertising advertising media media..
Foreign Trade Foreign Trade
mports mports consist consist mainly mainly of of manufactured manufactured goods, goods, petroleum petroleum
and and petroleum petroleum products, products, and and raw raw materials materials for for industry industry..
New New Zealand Zealand produces produces a a large large amount amount of of food, food, including including
meat, meat, dairy dairy products, products, fruits fruits and and nuts, nuts, and and fish fish.. Other Other
important important exports exports include include wool, wool, aluminum, aluminum, wood, wood, and and
starch starch..
Between Between 1992 1992//93 93 and and 1995 1995//96 96,, the the value value of of trade trade
increased increased by by nearly nearly 16 16% %.. However, However, 1996 1996 would would prove prove to to
be be a a peak peak for for New New Zealand's Zealand's foreign foreign trade trade;; it it has has not not quite quite
reached reached that that level level since since..
mports mports
Aircrafts/vehicles Aircrafts/vehicles Australia, United Australia, United
States, Japan, hina, U.K. States, Japan, hina, U.K.
mports ontinued mports ontinued
Petroleum Petroleum Australia, United States, Australia, United States,
Japan, hina, Singapore, Germany Japan, hina, Singapore, Germany
Major mports Major mports
% of ountry's GDP(2009) % of ountry's GDP(2009)
onsumer goods onsumer goods 18.4% 18.4%
Food Food 6.9% 6.9%
Fuels Fuels 10.1% 10.1%
ndustrial supplies ndustrial supplies 24.7% 24.7%
Machinery Machinery 22.9% 22.9%
Transportation Transportation 16.7% 16.7%
Other Other 0.3% 0.3%
Exports Exports
Fish Fish - - Australia, United States, Japan, Australia, United States, Japan,
hina, U.K. hina, U.K.
Exports ontinued Exports ontinued
Wood Wood - - Australia, United States, Japan, Australia, United States, Japan,
hina, U.K. hina, U.K.
Top ten Exports Top ten Exports
% OF OUNTRY TOTAL GDP(2009) % OF OUNTRY TOTAL GDP(2009)
Meat Meat 12.6 12.6
Milk and cream Milk and cream 8.3 8.3
Glues Glues 4.2 4.2
Aluminum Aluminum 3.9 3.9
Butter Butter 3.8 3.8
heese and curd heese and curd 3.7 3.7
Fruit and nuts Fruit and nuts 3.7 3.7
Wool Wool 3.1 3.1
Fish Fish 3.0 3.0
Wood in the rough or squared Wood in the rough or squared 2.5 2.5
New Zealand and Fs New Zealand and Fs
New New Zealand Zealand is is the the member member of of the the
nternational nternational Financial Financial institutions institutions such such as as
nternational nternational Monetary Monetary Fund, Fund, World World trade trade
Organization Organization and and Asian Asian Development Development Bank Bank..
As As a a member member of of these these
institutions, institutions, New New Zealand Zealand is is also also a a
shareholder shareholder and and helps helps to to fund fund their their work work
through through its its subscriptions subscriptions and and capital capital
contributions contributions..
New Zealand and its FTAs New Zealand and its FTAs
Australia : Australia : loser Economic Relations loser Economic Relations (1983) (1983)
hina: hina: New Zealand hina Free Trade Agreement New Zealand hina Free Trade Agreement (2008) (2008)
Thailand: New Zealand and Thailand loser Economic Partnership (2005) Thailand: New Zealand and Thailand loser Economic Partnership (2005)
Singapore: New Zealand and Singapore loser Economic Partnership (2001) Singapore: New Zealand and Singapore loser Economic Partnership (2001)
Brunei: Brunei: Trans Trans- - Pacific Strategic Economic Partnership Pacific Strategic Economic Partnership (2005) (2005)
[[
hile: hile: Trans Trans- - Pacific Strategic Economic Partnership Pacific Strategic Economic Partnership (2005) (2005)
Singapore: Singapore: Trans Trans- - Pacific Strategic Economic Partnership Pacific Strategic Economic Partnership (2005) (2005) - - Auxiliary to Auxiliary to
New Zealand and Singapore loser Economic Partnership New Zealand and Singapore loser Economic Partnership
Association of South East Nations: Association of South East Nations: - - negotiating along with Australia since negotiating along with Australia since
(2004) (2004)
Malaysia : Malaysia New Zealand Free trade Agreement Malaysia : Malaysia New Zealand Free trade Agreement announced on 2 June announced on 2 June
2009 2009
Hong Kong : Hong Kong Hong Kong : Hong Kong- -New Zealand loser Economic Partnership New Zealand loser Economic Partnership
negotiating since (2001) negotiating since (2001)
Trade relations with ndia Trade relations with ndia
On On 27 27
th th
jun jun 2011 2011 New New zealand zealand said said it it expects expects
to to conclude conclude the the negotiations negotiations for for a a Free Free Trade Trade
Agreement Agreement (FTA) (FTA) with with ndia ndia by by March March next next
year year with with the the target target of of trebling trebling bilateral bilateral
commerce commerce to to $ $3 3 billion billion by by 2015 2015..
The The two two countries countries hope hope to to treble treble their their bilateral bilateral
trade trade to to $ $3 3 billion billion from from the the current current $ $1 1..2 2 billion billion..
Opportunities for ndia in NZ Opportunities for ndia in NZ
As As there there is is Free Free Trade Trade Agreement Agreement under under negotiation negotiation there there
is is a a wider wider scope scope for for investment investment in in business business in in New New
Zealand Zealand..
Since Since there there is is no no direct direct air air contact contact to to New New Zealand Zealand
opportunities opportunities exists exists in in Telecommunication Telecommunication sector sector..
There There are are good good opportunities opportunities in in Tourism, Tourism, research, research,
Science Science and and Technology Technology from from both both the the ends ends..
ndians ndians are are among among the the most most affluent affluent tourists tourists to to New New
Zealand Zealand..
PEST ANALYSS PEST ANALYSS
Political Political:: The The traditionally traditionally conservative conservative National National Party Party and and left left- -
leaning leaning Labour Labour Party Party have have dominated dominated New New Zealand Zealand political political life life
since since a a Labour Labour government government came came to to power power in in 1935 1935.. During During its its
first first 14 14 years years in in office, office, the the Labour Labour Party Party implemented implemented a a broad broad
array array of of social social and and economic economic legislation, legislation, including including
comprehensive comprehensive social social security, security, a a large large- -scale scale public public works works
program, program, a a 40 40- -hour hour workweek, workweek, a a minimum minimum basic basic wage, wage, and and
compulsory compulsory unionism unionism..
The The 2008 2008 general general election election on on November November 8 8 was was comfortably comfortably won won
by by the the John John Key Key- -led led National National Party Party..
The The Key Key- -led led government's government's main main focus focus has has been been on on economic economic
growth growth as as the the New New Zealand Zealand economy economy recovers recovers from from a a period period of of
recession recession and and recovery recovery from from the the devastating devastating hristchurch hristchurch
earthquake earthquake of of February February 2011 2011
PEST (ontd.) PEST (ontd.)
Economic: Over the past 20 years the government has Economic: Over the past 20 years the government has
transformed New Zealand from an agrarian economy dependent transformed New Zealand from an agrarian economy dependent
on concessionary British market access to a more industrialized, on concessionary British market access to a more industrialized,
free market economy that can compete globally. free market economy that can compete globally.
This dynamic growth has boosted real incomes This dynamic growth has boosted real incomes - - but left behind but left behind
some at the bottom of the ladder some at the bottom of the ladder - - and broadened and and broadened and
deepened the technological capabilities of the industrial sector. deepened the technological capabilities of the industrial sector.
Per capita income rose for ten consecutive years until 2007 in Per capita income rose for ten consecutive years until 2007 in
purchasing power parity terms, but fell in 2008 purchasing power parity terms, but fell in 2008- -09. 09.
Debt Debt- -driven consumer spending drove robust growth in the first driven consumer spending drove robust growth in the first
half of the decade, helping fuel a large balance of payments half of the decade, helping fuel a large balance of payments
deficit that posed a challenge for economic managers. deficit that posed a challenge for economic managers.
PEST (ontd.) PEST (ontd.)
Economic (ontd.) Economic (ontd.)
The economy fell into recession before the start of the global The economy fell into recession before the start of the global
financial crisis and contracted for five consecutive quarters in financial crisis and contracted for five consecutive quarters in
2008 2008- -09. n line with global peers, the central bank cut interest 09. n line with global peers, the central bank cut interest
rates aggressively and the government developed fiscal rates aggressively and the government developed fiscal
stimulus measures. stimulus measures.
The economy posted a 1.7% decline in 2009, but pulled out of The economy posted a 1.7% decline in 2009, but pulled out of
recession late in the year, and achieved 2.1% growth in 2010. recession late in the year, and achieved 2.1% growth in 2010.
Nevertheless, key trade sectors remain vulnerable to weak Nevertheless, key trade sectors remain vulnerable to weak
external demand. external demand.
PEST (ontd.) PEST (ontd.)
Social: Social: Maori and Pacific communities being over represented Maori and Pacific communities being over represented
in negative statistics, such as crime, and teen pregnancy, etc. in negative statistics, such as crime, and teen pregnancy, etc.
Unemployment, particularly youth unemployment. Unemployment, particularly youth unemployment.
Economic and social inequality. Economic and social inequality.
rime rates are fairly high. rime rates are fairly high.
Obesity, NZ has a very high obesity rate in comparison with the Obesity, NZ has a very high obesity rate in comparison with the
rest of the OED. rest of the OED.
Binge drinking culture. Binge drinking culture.
PEST (ontd.) PEST (ontd.)
Technological: Most scientific research in New Zealand is Technological: Most scientific research in New Zealand is
funded by the government, principally by the Department of funded by the government, principally by the Department of
Scientific and ndustrial Research (DSR) and the Ministry of Scientific and ndustrial Research (DSR) and the Ministry of
Agriculture and Fisheries. Agriculture and Fisheries.
The The awthron awthron nstitute at Nelson, established in 1919, conducts nstitute at Nelson, established in 1919, conducts
research in chemistry, biology, and environmental and marine research in chemistry, biology, and environmental and marine
studies. New Zealand has 20 other institutes conducting studies. New Zealand has 20 other institutes conducting
research in agriculture, veterinary science, medicine, and research in agriculture, veterinary science, medicine, and
general sciences and 17 universities and technical institutes general sciences and 17 universities and technical institutes
offering degrees in basic and applied sciences. n 1987 offering degrees in basic and applied sciences. n 1987 97, 97,
science and engineering students accounted for 20% of college science and engineering students accounted for 20% of college
and university enrollments. and university enrollments.
onclusion onclusion
New New Zealand Zealand is is a a country country with with great great potential potential
urrently urrently they they are are lagging lagging competitively competitively because because of of
Geographic Geographic location location
Lack Lack of of technology technology
Abundance Abundance of of small small businesses businesses
n n order order to to make make it it out out of of the the recession recession and and increase increase their their
competitive competitive advantage advantage New New Zealand Zealand should should
Focus Focus on on implementing implementing process process improvement improvement in in all all
companies companies (regardless (regardless of of size) size)
Focus Focus on on reducing reducing costs costs and and increasing increasing R&D R&D
Also Also there there is is good good scope scope for for ndia ndia for for trading trading with with New New
Zealand Zealand as as there there is is a a Free Free Trade Trade Agreement Agreement under under
consideration consideration with with New New Zealand Zealand..
onclusion onclusion
New New Zealand Zealand economy economy fell fell into into recession recession.. t t rebounded rebounded in in 2010 2010,,
with with GDPgrowth GDPgrowth of of 1 1..5 5% %..Growth Growth has has been been uneven uneven and and modest modest in in
2011 2011,, at at about about 0 0..9 9% %..The The earthquake earthquake in in February February 2011 2011 caused caused
serious serious damage damage and and slowed slowed economic economic activity activity.. Hence Hence Economical Economical
Risk Risk moderate moderate..
orruption orruption is is perceived perceived as as almost almost nonexistent nonexistent as as New New Zealand Zealand
According According to to the the World World Bank, Bank, New New Zealand's Zealand's business business environment environment
is is ranked ranked third third in in the the world world (behind (behind Singapore Singapore and and Hong Hong Kong) Kong) in in
terms terms of of ease ease of of doing doing business business..Hence Hence political political risk risk is is also also low low..
Financial Financial System System Risk Risk is is also also low low as as New New Zealand Zealand has has undergone undergone
massive massive reforms reforms over over the the past past 2 2 decades decades transforming transforming the the
economy economy to to one one that that is is open open and and globally globally competitive competitive..
Socially Socially it it is is fairly fairly stable stable.. Therefore Therefore New New Zealand Zealand is is good good country country
for for investment investment..
THANK YOU THANK YOU