Critcal Business Issue in Business in New Zealand

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“Looking four, five, ten years into the future I'd hate to see New Zealanders as tenants in their own country and that is a risk I think if we sell out our entire productive base”

The other problem with FDI is acquiring of land right United states is most significant acquirer of the land in 2013-14 period, approximately 115,000 hectares of land is acquired (KPMG International Cooperative, 2015). US is followed by China and Netherland with almost half of the number of hectares combined. The pressure on the local farmers can be drawn out by the fact that 22% of the land that has been acquired comprises dairy (KPMG International Cooperative, 2015). Which in turn affects the agriculture industry of New Zealand, the recent slump in milk prices is an example of such a situation. Australian entities have a lot of influence on new Zealand’s market. As most of primarily produced by products are shipped across the ocean to control the price of dairies at home. New Zealand itself is now looking forward to TTP (Trans pacific Partnership) which further loosen the yet watchful trade policy of New Zealand from which China is intentionally excluded.

Stiff Competition from Asian markets

As Asian markets have a bigger stake in the international market their influence is also gargantuan. Asian companies are also pooling their resources to buy investments in New Zealand. As well as Asian people are held to be responsible for these sudden rises in the price of properties in Auckland. Although most of the people agree that exports to Asia would be beneficial for the domestic market, yet fewer agreed it would be beneficial the other way around (Asia New Zealand Foundation, 2016). Speaking of business price is crucial factor in supply and demand for comparable equitable products for example (Land Based aquaculture Assessment framework, 2016) the NZ seafood market is small in insignificant in the global context so it cannot influence the fact that china consumes the largest amount fish in the world or neither it can gain much of because of number of factors which include cost of manufacturing and shipping. Any exports of fresh chilled seafood from NZ is required to be air freighted adding significant cost which disadvantages NZ product in export markets. Barramundi, kingfish, cobia and tilapia producers in Australasia can get their product to their local market cheaper than NZ producers will be able to for Hapuka and kingfish (Land Based aquaculture Assessment framework, 2016).

The New Zealand market should keep up with the Asian markets for instance for dairy exporters it not just about the product and packaging innovation but also expansion, research and development and support to the consumer demands (Stringleman, 2016). One of New Zealand’s biggest exported product is milk but even that now facing some huge hurdles especially the local Asian brands. It has been observed that local Asian brands in developing countries look to maintain and grow their shelf space exponentially (Press Release: Rabobank, 2016).

Dependence on Exports and Imports

Economies in Asia are becoming exceedingly crucial export markets and sources of imports for New Zealand (Zhang, 2016). And even though exports helped the New Zealand’s economy, especially of dairy products and logs, but it put a lot of pressure on the domestic marketers (Weir, 2016). New Zealand’s trade is very much slanted towards the Asia-Pacific region, both in terms of exports and imports. In recent years’ imports, have increased in which Australia remains the biggest exporter to New Zealand followed by US and japan. This price of imports is an essential sponsor to the underlying tendency in New Zealand’s tradable inflation. Changes in trading partner inflation, together with exchange rate movements, have strong influence on import prices and hence on tradable inflation (Zhang, 2016). New Zealand most imported products are Machinery, vehicles and oil followed by electronic equipment and plastics (International Trade Centre, 2016). This because NZ is not manufacturing giant like China or India neither does it harbors any oil deposits or mineral ores. That is its economy is heavily dependent on importing manufactured goods. It is only the agriculture sector which has shown some untattered promise in the international market. Because of the that New Zealand is suffering from the trade deficit. It rans worse than an expected trade deficit of $649 million in July. The exports were worth $4.2 Billion but was outweighed by the massive imports of $4.8 billion (James, 2016). Despite the collapse in world prices for dairy products, New Zealand's single biggest export, total annual export sales are down just 4 per cent for the July year. As BNZ economist said, Exports have been boosted by the big plummet in the New Zealand dollar in the past year, with high prices for beef and a big lift in kiwifruit volumes.

Methods

The research methods would be of qualitative approach, because qualitative research provide with quality data. Beside that quantitative data is sometimes not reliable. But the main reason for this method is because qualitative research is designed to reveal a target audience’s range of behavior. Its focus would be on in-depth studies of small groups of people. The outcome of qualitative research is descriptive rather than predictive.

- For the process of data collection, a combination of several data collection methods would be used. In person interviews with domestic businessmen and focus groups would be ideal for the research. The number of respondents could vary from 10 to 20 people.

- The data would be collected via organizing personal interviews at designated place or some form telephonic conversations which can also be scanned as interviews. Other than that, online forums and social networking sites could be used for the same purpose.

Ethical Implications

- Every participant is participating in it with his or her consent. They shouldn’t be under any duress, otherwise it would affect their answers.

- Any personal information regarding the participants would be destroyed. Their answers must be recorded not their personal information. Their consent would be taken before recording their interviews. They will be illuminated about the use of information gathered.

- Anonymity of the participants would be maintained they will be provided with anonymity with the use of pseudonyms. The participants would be provided with prior information regarding the research and the purpose of the research.

- The data collected through