Political, legal, Economic and Ethic Environments (Research Paper Sample)

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Political, legal, Economic and Ethic Environments
New Zealand is one of the most stable countries of the world due excellent political governance. New Zealand was ranked fifth based on the strength of its democratic institutions in 2011(World Trade Press 12). The country was also the first in lack of corruption and transparency in governance. New Zealand has 79 percent level of civic participation since the citizens trust their political institutions (Corrigan 37). New Zealand solidly support free trade and guarantees stable and strong property rights to both private and public investors.
The corporation tax in New Zealand is 23%; this level of tax is manageable by foreign direct investors (World Trade Press 12). The country, therefore, provides an excellent legal business environment since it protects the international and local investors. New Zealand has a modern and developed market economy with an estimated GDP at purchasing power parity of $28,250. The country was ranked fourth in Index of Economic Freedom in 2012 (Corrigan 37). Ethically, the monarchy and local leaders encourages New Zealanders to observe the highest moral standards regarding respect for other people’s property.
SWOT analysis
Opportunities
New Zealand has a stable political environment that both cross-border and local business can maximize on since it does not make them worry about their investments. The legal system of the country guarantees protection of property rights; this makes investors trust the government as it secures investors. The GDP per capita in New Zealand is $ 28,250, indicating that the purchasing power among the New Zealanders is high (Powell and Donald 25).
Threats
Global economic recessions that occur frequently may pose challenges to the running of the businesses. This is because economic downtowns reduce people’s abilities to buy. The climatic conditions in New Zealand are sometimes not desirable for business growth. The climatic conditions are not stable and vary across the country (Powell and Donald 25). The general snow season occurs during early June through October in the south. Additionally, frequent constitutional reviews may lead to creation of laws that are unfavorable international businesses.
Market Opportunities in New Zealand
New Zealand primarily depends on cross-border businesses, particularly in agricultural products (World Trade Press 12). The country’s agricultural exports accounts for more than 24 percent of its output. This exposes New Zealand to vulnerabilities associated with international commodity prices and global recessions of the economy due to instability of prices for agricultural products. The principal export industries in New Zealand include horticulture, forestry, agriculture, mining, and fishing. The major export partners are China, United States, Australia, Japan, and the United Kingdom. New Zealand and China signed the New-Zealand Trade Agreement on April 7, 2008 with the objective of enhancing their international trade (Powell and Donald 25). The New Zealand service sector is the most developed; this is followed by manufacturing and construction while extractive sector is the least developed. Tourism contributes approximately $15 billion to th...