Feasibility of Establishing B-Health in Hong-Kong and New Zealand

GLOBAL BUSINESS
ASSIGNMENT

Contents
Introduction............................................................................................................... 2
Socio-economic environment......................................................................................... 2
Economic overview..................................................................................................... 2
Real GDP of Hong-Kong.............................................................................................. 3
Real GDP of New Zealand............................................................................................ 3
Challenges and strengths............................................................................................... 4
Political system and trade relationship with Australia............................................................5
Business ease............................................................................................................. 5
Potential of market...................................................................................................... 6
Recommendation for the country..................................................................................... 7
Conclusion................................................................................................................ 7
References................................................................................................................ 8

Introduction
B-Health is an Australian based company, which has specialisation in baby food. This report
conducts a research on macro environment of two countries New Zealand and Hong Kong in
order to identify the feasibility of the ease of establishing business. This report examines
social, political, economic, and market potential of the Hong-Kong and New Zealand (Tsui,
2017).
Socio-economic environment
Social factors of Hong-Kong has the understanding of various customer segment with the
help of income distribution, rural segmentation, and the urban segmentation. Hong-Kong is a
centre of healthcare, educational, and affluence in the nation. Hong-Kong has the estimated
population of nearly 7.367 million in 2016 and it is expected to reach to 7.72 million in 2022.
Hong-Kong`s culture is mainly based on principle of traditional Chinese (Chiang, Tao, &
Wong, 2015). This country`s culture means that people would be more hard working with
new degree of challenges and great adaptability can help the B-health to achieve success due
to ease of conducting business (Tsui, 2017).
Economic overview
Change in the demand of other products can affect the economic situations of the New
Zealand. The economy of the country has lower rate of inflation, which further contributes to
low rate of interest and increased purchasing power (Chiang, Tao, & Wong, 2015).

Real GDP of Hong-Kong
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Source: CEIC, 2018)
On the other hand, it can be seen that the GDP in Hong-Kong has been fluctuating such as it
is estimated at 2.9 percent in 2020, 3.01 percent in 2021, and 3.01 percent in 2022 but it is
estimated to decrease to 2.96 again in 2023 and finally 2.99 percentage in 2024. It has been
noticed that the major baby food, which has been exported to this country, is from China.
This country is quite famous for its cost costing production (CEIC, 2018).
Real GDP of New Zealand
2.0
2.5
3.0
3.5
4.0
4.5
% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Source: CEIC, 2018)