Country Analysis: New Zealand vs Hong Kong

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author note

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Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Country analysis between New Zealand and Hong Kong...................................................2
2.1Economic condition..........................................................................................................2
2.2 Overview of New Zealand and Hong Kong economy.....................................................2
3.0 Political environment and Risk............................................................................................4
3.1 Political environment.......................................................................................................4
3.2 Risk..................................................................................................................................4
4.0 Business environment..........................................................................................................5
4.1 Trade Agreements and Economic Freedom.....................................................................5
4.2Ease of doing Business......................................................................................................6
4.3 Baby product market in Hong Kong and New Zealand...................................................6
5.0 Country choice.....................................................................................................................7
6.0 Conclusion............................................................................................................................9
References................................................................................................................................10
Appendices...............................................................................................................................11
Appendix 1...............................................................................................................................11

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1.0 Introduction
This report aims to examine the socio- economic, political and economic environment
of New Zealand and Hong Kong to highlight the market potential of each country. B- Health
has been chosen as an imaginary company established in Queensland which specialises in the
production and export of baby food products. This report will use the weighted index score to
examine the critical factor for making a market entry into a foreign market and provide
validate justification for choosing one of the countries for expansion. The company has been
successfully maintaining a strong position in the local market and the firm wants to expand
their horizon by entering into a foreign market.
2.0 Country analysis between New Zealand and Hong Kong
2.1Economic condition
The economic stability of the trading partner and the operating country is one of the
significant factor in long term profitability and sustainability of the organization. The
economic aspect will provide a brief understanding of the gross domestic product, factors
affecting spending habits of the people, poverty rates and factors affecting wealth generation
of the country.
2.2 Overview of New Zealand and Hong Kong economy
The population of Hong Kong is 7.4 million with GDP per capita of 46,080. It can be
seen that GDP of Hong Kong is growing significantly and it has grown by 3% in the fiscal
year of 2019 (Coface.com, 2019). The inflation of the country is 2.3 which relative low
along with public debt which is .1% (Coface.com, 2019). Moreover, Hong Kong enjoys an
open economy with high quality infrastructure. It consists of global financial centres of
highest quality and has been successful in developing a strong banking industry. Moreover,

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the robustness of the institutional quality and judicial system makes the country lucrative for
investment from the perspective of various foreign investors.
New Zealand is a country with 4.8 million with a GDP per capita of 41,572. The
growth in GDP has decrease to 2.9 % in the year of 2019 and there has been increase in the
inflation rate to 1.7 % (Coface.com, 2019). The budget balance for the country is .7 which
shows surplus in the year of 2019 and the public debt of the company is 29.4 which is quite
higher when compared to Honk Kong (Coface.com, 2019).
Source: (Coface.com, 2019)