Global Business Assignment

This report analyzes the pros and cons of expanding the B-health business in New Zealand and Hong Kong, focusing on the economic, political, and business environments in these countries.

Running head: Global business assignment
GLOBAL BUSINESS ASSIGNMENT
Name of the student
Name of the course
Course ID:

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Global business assignment
Table of Contents
1.0 Introduction................................................................................................................................2
Discussion........................................................................................................................................2
2.0 Economic event.........................................................................................................................3
2.1 Impact of GDP growth in the expansion of the business...........................................................3
2.2 Impact of inflation rate on baby food market............................................................................5
3.0 Political environment and the risks............................................................................................6
3.1 Trade relationship with Australia..............................................................................................6
3.2 Political risk factors such as levels of corruption and political stability...................................7
4.0 Business environment................................................................................................................7
5.0 Weighted index..........................................................................................................................8
6.0 Country Choice..........................................................................................................................9
Conclusion.....................................................................................................................................10
Reference list.................................................................................................................................11

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Global business assignment
1.0 Introduction
The purpose of the report is going to identify the pros and cons that the B-health is going
to face while expanding their business in the country like New Zealand and Hong Kong. In order
to expand the business in the above-mentioned countries the study will identify economy,
political and business environment in those countries. This is important in the sense that through
this analysis, the business is going to identify policies that will definitely increase the business.
The company is mainly dealing with baby products and baby food items that they are planning to
expand in New Zealand and Hong Kong.
Discussion
In order to make an analysis regarding the expansion in the business the study will
definitely allow the company to deal with the factors like economic factors, political factors and
risks associated with them and business environments.

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Global business assignment
2.0 Economic event
Through the discussion of the economic event the performance of the economic variables
will discuss the strong impact of the government policies.
2.1 Impact of GDP growth in the expansion of the business
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
2
4
6
8
10
12
14
16
18
% change in GDP
Values
Figure 1: Change in GDP in Hong Kong, New Zealand
(Source: Data.worldbank.org, 2019)
The above diagram is showing the fact that the % change in GDP is going to identify the
factors and the environment whether is suitable for the expansion of the business in these
countries. It is important factor in the sense that both New Zealand and Australia is going more
or less in the same direction and this is the most important factor for the expansion of baby food
business. On the other hand, the GDP of the Hong Kong is following an upward trend during the
period taken into consideration. From the period of 2000-2017, the % change in the GDP is
going to highlight the importance of phase of both global financial crisis and post global
financial crisis.

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Global business assignment
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
0
100
200
300
400
500
600
700
98.98
136.23
186.43
247.56
311.71
361.19
399.71
438.79
477.67
510.86
542.18
574.71592.27
613.95
Average Revenue of per capita in baby food
products (US$) in Hong Kong
Average Revenue of per capita in
baby food products (US$)
Figure 2: Average revenue of per capita in baby food product in Hong Kong
(Source: Statista Market Forecast, 2019)
The above figure is showing the fact that the market for baby food products is quite
impressive in Hong Kong. On the other hand, through the development of expansion of the
business by B-health is going to indulge the development of their revenue as it has been
predicted that until 2023, the market is going to increase and the trend is showing an upward
trend. The Hong Kong is creating better opportunities for the B-health company to expand in
Hong Kong. On the other hand, consumption of baby product in New Zealand has increased by
9.2% times in recent times that was in 2009. During the period of 2009-2015, the volumes of
baby food market has increased by 18.4% and are dominated by Heinz Watties and Danone. This
is one of the important aspect for the company to indulge the expansion of their business.

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Global business assignment
2.2 Impact of inflation rate on baby food market
Along with the growth of the economy, the rate of GDP rate of inflation is also an
important factor for the development of baby food market. This is important in the sense that
through the improvement in the inflation rate, the B-Health is mainly going to indulge the price
that will be determined by presence of economic inflation.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-3.686
-1.658-2.293-2.674
-0.2750.826
2.014 2.03
4.296
0.577
2.314
5.277
4.064 4.324 4.439
2.995 2.411 1.481
2.615
2.625 2.677
1.754
2.29
3.037
3.365 2.376
3.959
2.116
2.302
4.028
1.06 1.134 1.228
0.293 0.646 1.851
inflation rate
Hong Kong New Zealand
Figure 3: Inflation rate in New Zealand and Hong Kong
(Source: Data.worldbank.org, 2019)
The above figure is showing the fact that in order to highlight the overall business
expansion process, it is important to increase the policy of the business expansion that will
mainly focus on the price setting of the baby food products. It is important in the sense that it
will be better to invest and expand the business in Hong Kong. On the other hand, through the
improvement in the inflation rating the development of the baby food market will allow the B-
Health company to expand their business. This is important in the sense that due to presence of
the low inflation in the economy is going to help the company in improving the business if they
are expand their business in Hong Kong.

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Global business assignment
3.0 Political environment and the risks
The political environment is the main consequences that are having the development of
business is mainly thinking of better innovation in technologies that will identify the pros and
cons of the market expansion.
3.1 Trade relationship with Australia
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
100
200
300
400
500
600
Trade relationship (% of GDP)
Values
Figure 4: Trade as percentage of GDP
(Source: Data.worldbank.org, 2019)
The above diagram is showing the fact trade relationship of both New Zealand and Hong
Kong is going upward directions. It is important in the sense that through this important factor
the B-Health Company is going to do efficient trade with Hong Kong and New Zealand.
Strategically seeing the company is keener to expand their business in Hong Kong. Another
reason of expanding the business in Hong Kong is mainly the fact that they will get good
business environment in the economy of Hong Kong.

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Global business assignment
3.2 Political risk factors such as levels of corruption and political stability
Moreover, in Hong Kong, the political stability is present. In recent phase of
development, the Hong Kong is not facing any kind of political disruptions. On the other hand,
the destabilization in the government has not taken place mainly due to the terrorism activities. It
is an important aspect in the sense that this absence of political stability is going to highlight the
growth of the economy. On the other hand, it is important to use the political stability is going to
highlight the importance of the growth in the economy. Through the improvement in the political
stability, it is important to indulge the importance of better technological spillovers. It is
highlighting the politically motivated conditions that will increase the stability of the price. This
is important in the sense that through the improvement in the political stability in the economy.
Through the important aspect the development of better innovation will help the B-Health
Company.
4.0 Business environment
Trading across the border is going to highlight the development of better indulgence in
the business environment. Through the incorporation of development of better innovation in the
improvement in the business environment that will help the B-health to expand their business in
the economy. It is important in the sense that doing business across the border will feel the
positivity within the stakeholders so that they feel the urge to invest in a better way. On the other
hand, through the motivation of the economic background, the development of better
environment for business will definitely allow the incorporation of better benefit that will readily
indulge the importance of resource allocation (Feenstra, 2015). On the other hand, all these
countries are having huge impact on the global trade environment that will definitely allow the
incorporation of resource utilization and will help the company to increase their resources. This

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Global business assignment
is important in the sense that there is high opportunity of growth in these markets regarding the
development of baby food products. It is highly important to estimate the demand of the trading
countries that will definitely increase the incorporation of technologies. This is important in the
sense that it will definitely increase the information regarding the development of trade.
5.0 Weighted index
NEW ZEALAND AUSTRALIA
Variable Weighting
Adjusted Score Adjusted Score
Score Score
Potential
Market
25% 8 4.78 5 2.69
Wealth
Distribution
15% 5 1.78 3 0.69
Economic
Freedom
25% 6 2.78 8 5.69
Taxation &
Tariffs
15% 4 0.78 6 3.69
Political
Stability
20% 9 5.78 7 4.69
Total !00%

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Global business assignment
6.0 Country Choice
On the other hand, index of the chosen country is going to increase the resource
distribution is going to implement the development of the business. On the other hand, through
the utilization of development in the business will create the innovation in the technologies that
will definitely allow the country to indulge in better business. On the other hand, resource
distribution using the modern technologies will definitely allow the incorporation of better
improvement in the supply chain management. On the other hand, through the innovation in
choosing the country will obviously allow the incorporation of better understanding of resources
that are available. In order to highlight the resource utilization and will definitely allow the
incorporation of the resources utilization that has taken deep initiate in making the resource
getting channelized into broader section. On the other hand, through the incorporation of weight
age of trade is going to identify mainly the problem in the development of the resource
utilization that will definitely increase the trade off. This will allow the incorporation of better
trade and will increase the resource utilization that will definitely allow the incorporation of
better business environment. Now the weighted index will be depending largely on the
government and trade policies that will bring the innovation process through the incorporation of
better communication. On the other hand, using the resources in an effective way will bring the
development of business.

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Global business assignment
Conclusion
From the above analysis, the study came to conclude that whole economy in the Hong
Kong is going to be best option for the Australian company to expand their business. Through
the incorporation of better involvement of resource utilization will allow the company to increase
the channelization of resources that will allow the development of economic innovation that has
taken the help of better policies that will allow the smooth business.

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Global business assignment
Reference list
Baby Food - Hong Kong | Statista Market Forecast. (2019). Statista. Retrieved 2 May 2019,
from https://www.statista.com/outlook/40120000/118/baby-food/hong-kong#market-arpu
Chaney, T. (2018). The gravity equation in international trade: An explanation. Journal of
Political Economy, 126(1), 150-177.
Connolly, M. B., & Swoboda, A. K. (2018). International trade and money. Routledge.
Data.worldbank.org. (2019). GDP growth (annual %) | Data. [online] Available at:
https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?
end=2017&locations=NZ&start=2000 [Accessed 24 Apr. 2019].
Feenstra, R. C. (2015). Advanced international trade: theory and evidence. Princeton university
press.
Home. (2019). Department of Foreign Affairs and Trade. Retrieved 24 April 2019, from
https://dfat.gov.au/pages/default.aspx
Inflation, consumer prices (annual %) | Data. (2019). Data.worldbank.org. Retrieved 24 April
2019, from https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?end=2017&locations=NZ-
HK&start=2000
Jensen, J. B., Quinn, D. P., & Weymouth, S. (2017). Winners and losers in international trade:
The effects on US presidential voting. International Organization, 71(3), 423-457.
Neary, J. P. (2016). International trade in general oligopolistic equilibrium. Review of
International Economics, 24(4), 669-698.
Trade (% of GDP) | Data. (2019). Data.worldbank.org. Retrieved 24 April 2019, from
https://data.worldbank.org/indicator/NE.TRD.GNFS.ZS?end=2017&locations=AU-NZ-
HK&start=2000

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Global business assignment
Vernon, R. (2017). International investment and international trade in the product cycle.
In International Business (pp. 99-116). Routledge.
Viner, J. (2016). Studies in the theory of international trade. Routledge.
Wiedmann, T., & Lenzen, M. (2018). Environmental and social footprints of international
trade. Nature Geoscience, 11(5), 314-321.