Analyzing the Economic and Political Environment for Expanding Business in New Zealand and Hong-Kong

Running Head: GLOBAL BUSINESS 0
B HEALTH
SOCIOLOGY
GLOBAL BUSINESS
STUDENT NAME

GLOBAL BUSINESS 1
Executive Summary
The doing business across the boundaries are known as international business. To
expand business at global level or doing international business it is very essential to analysis
the country. The B Health company is an Australian firm as they wants to expand its baby
products business New Zealand and in Hong Kong so that firm can faced certain amount of
growth. To have successful expansion company will analyse certain economic environment
of both countries as well as their strength as well as challenges of the particular economy.
The political risk and market potential are analysed by which company will finalised in which
country they can start their trading and business. The weighted index gives the clear point of
view for expanding business.

GLOBAL BUSINESS 2
Table of Contents
Executive Summary...................................................................................................................1
1.0 Introduction..........................................................................................................................4
2.0 Economic Environment of New Zealand and Hong-Kong..................................................4
2.1 The Economy of New Zealand and Hong-Kong..............................................................4
2.2 Strength and Challenges of Economy of New Zealand....................................................5
Strengths.............................................................................................................................5
Challenges...........................................................................................................................5
2.2 Major economic indicator and Social & demographical trends of both the countries.....5
2.3 Unemployment and Inflation trends in both countries.....................................................5
3. Political Environment or Risk................................................................................................6
3.1 Political system.................................................................................................................6
3.2. The current government priorities and challenges..........................................................6
3.4 Trade relationship with Australia and political risk.........................................................6
4. Business environment............................................................................................................7
4.1 Ease of doing business rating...........................................................................................7
4.2 Trading across borders and enforces contracts.................................................................7
4.3. Relevant industrial and consumer trends.........................................................................8
4.4. Quality of infrastructure and Market Potential................................................................8
5. Country choice.......................................................................................................................9
5.1. Weighted Index...............................................................................................................9
Conclusion..................................................................................................................................9

GLOBAL BUSINESS 3
1.0 Introduction
Global business refers to doing business of products and services across the borders.
The companies which across the boarders are of large size, sells large amount of products per
year, marketing strategies are beyond expectation and companies always use advance
technology so that they can make strong presences in global market (Webster & Hamilton,
2018). This report is based upon B Health company is based in Queensland, they are
specialised in producing baby products. The company wants to expand its business in New
Zealand as well as in Hong-Kong. For the expansion company require to examine economic
and political environment of both the countries and also the risk associated with each factors.
The business environment is also study in which company analyse market potential of a
product in each country.
2.0 Economic Environment of New Zealand and Hong-Kong
2.1 The Economy of New Zealand and Hong-Kong
The B Health wants to expand their business in New Zealand or in Hong-Kong. To
conduct stress free trade or hustle free expansion of business it is an essential element for
companies examine appropriately economic environment of countries. The economic
environment refers to external factors due to which buying habit of consumer and business
get influences by which performance of the company get affected. The economic factors are
income of a consumer, interest rates, inflation rates, employment, productivity, and wealth of
an individual by business and buying habit get influence. The New Zealand is considered as
53rd largest national economy all over the world as measured by GDP (Gray & Heron,
2010). As per the purchasing power parity New Zealand comes up at 68th place. The country
is considered as most globalised economies but they totally depends upon international trade
mainly with Australia, china, USA, European unions, Japan etc. The country is closely
aligned with Australia as per the agreement made between each other’s. The Hong-Kong
economy is considered as world’s freest economy and their freedom score is 90.2 as per
index. The freedom is per trade, government intervention, and monetary freedom as well.
Their economy is world’s leading international financial centres.