Business Culture and Free Trade Agreements

International Business
1

Table of Contents
Essay 1: Business Culture..........................................................................................................4
Introduction................................................................................................................................4
Evaluation of individualism and collectivistic culture characteristics.......................................4
Learning’s for New Zealand Business managers while interacting with Chinese Managers....5
Conclusion..................................................................................................................................5
References..................................................................................................................................7
Essay 2: Free Trade Agreements................................................................................................8
Introduction................................................................................................................................8
Advantages to New Zealand in entering into the Free Trade Agreement..................................8
Disadvantages to New Zealand in entering into the Free Trade Agreement...........................10
Improvement those are required to be made in Free trade agreement.....................................10
Conclusion................................................................................................................................10
References................................................................................................................................11
Essay 3: Foreign Direct Investment.........................................................................................12
Introduction..............................................................................................................................12
Analysis of nature and operation of global money and capital market....................................12
Assessment of FDI policy of New Zealand (Exports).............................................................12
The changes required in FDI policy of New Zealand..............................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15
Reflective Learning..................................................................................................................16
References................................................................................................................................18
2

Table of Figures
Figure 1: Graph representing reducing duties on New Zealand Exports to China under FTA..9
Figure 2: Analysis of trend of New Zealand's Foreign Direct Investment..............................13
3

Essay 1: Business Culture
Introduction
Business culture can be referred as key variant which has significan impact on each business
operaion. Consequently, trading with worldwide complexities as well as cultural sensitivity
that is concerned while conducting business in the popular countries has been growing in
significant manner. The fact that culture varies across the nation cannot be changed. Culture
comprises knowledge about techniques, food and dress culture, state of mind, principles,
language, symbols, socio-political and financial performance, native technique of making
decisions and implementing power, technique of manufacture as well as economic
connections etc. Thus, it is appropriate to state that it covers all the aspects of life.
Evaluation of individualism and collectivistic culture characteristics
Individualistic set next to its opposite communism that describes the level to which
individuals are tending toward outstanding in groups. The specified culture assists in
developing the contractual relations that rotate around the basics of exchange. Such kind of
cultures are connected with the computation of profit and loss proceeding towards meeting in
behaviour (Armstrong, and Li, 2017).
The people relating to individualistic cultture are connected with the different group that
barely have an impact on their lives. In specified culture individuals emphasizes on the
horizontal connections for example: connection among the spouse rather than the vertical
connections like connection between children and parent. The ideas on which they believe are
unique (Arpaci, 2019)
On the other hand in Collectivistic culture individual or organization behaves according to
the social norms that are recognised for upholding of social agreement between the groups
members. The organizations allow wider communal with observance to inference of their
performance. Further, contribution of resources and willingness to renounce individual
interest maintains in mind the communal interest (Kim, 2017). Further decision is made
considering the impact of same on some groups like friends and family (Kiani, Laroche, and
Paulin, 2016).
4