Country Report: B-Health Baby Food Product Market Analysis, Semester 1

This country report provides a comparative analysis of the economic, political, and business environments of Hong Kong and New Zealand to assess the market potential for B-Health baby food products. The report examines key economic indicators such as GDP, inflation, and unemployment rates, along with political stability and business-friendliness factors. It explores the strengths and challenges of each country, considering factors like ease of doing business, trade relationships, and currency regulations. The analysis concludes that New Zealand is the more suitable location for B-Health's business due to its favorable economic conditions, strong political system, and proximity to Australia, despite a smaller market size. The report highlights the importance of strategic relationships and product efficiency for business success. The report includes visual aids like graphs and charts to support the analysis and recommendations.

Country Report Analysis

Table of Contents
1.0 INTRODUCTION.....................................................................................................................3
2.0 Economic Environment.............................................................................................................3
2.1: Economic environment of New Zealand:-...........................................................................3
2.2: Economic environment of Honk Kong................................................................................4
3.0 Political environment and risk...................................................................................................5
3.1 Political environment of New Zealand.................................................................................5
3.2 Political environment of Hong Kong....................................................................................5
4.0 Business environment................................................................................................................6
4.1 Business environment of the New Zealand:..........................................................................6
4.2 Business environment of the Hong Kong:............................................................................6
5.0 Country choice...........................................................................................................................6
6.0 Conclusion.................................................................................................................................7
REFERENCES................................................................................................................................8

1.0 INTRODUCTION
This report will carry on socio-economic, political and business environment of Hong
Kong and New Zealand to understand a scope for selling of baby food products in any one of this
of country after complete recommendation on given location. The significance of this report is
consists of selling of the baby food products of B-Health to any of these country after brief level
of analysis about socio-economical, political and business environment of Hong Kong and New
Zealand (Sebastian and et. al., 2013). B-Health is an Australian largest firm which majorly deals
in selling baby care product s or items with purpose to increase its reach and denomination of
services. As, this report will focus on analysis of market potential of B-Health such as socio-
economic, political and business environment to sell baby food products. This level of report is
the highly comprehended on level of critical analysis. Product profile is majorly consists of baby
milk powder, milk crunch and eating powder.
2.0 Economic Environment
This is a level of environment which tells about economic condition such as interest rates,
monetary & fiscal policy, currency regulation and exchange rates of an economy. In this report,
two major countries such as economic analysis of two countries such as Hong Kong and New
Zealand will be undertaken with major topics such as Snapshot of an economy, strengths and
challenges and major indicators such as percentage level of GDP of both the nation to analyze
selling of the baby food products of B-Health to be sell in these two given countries.
2.1: Economic environment of New Zealand:-
Economy structure of the New Zealand is comprises of 53rd largest national economy in a
world, which has been measured by nominal gross domestic product and also ranked as 68th in a
world as largest for PPP(purchasing power parity). The major strength of this economy is major
support of financial base, which majorly comes from agriculture and tourism on a greater level.
Challenges are dependence on one major source of income, that is agriculture (Katz and et. al.,
2013). This economy is suitable to sell baby products of B-Health on higher domain and because
of it reach nearer to Australian region. The unemployment in NZ is very least, because of
number one rank in ease of doing business. Inflation rate in New Zealand is recorded as 1
percent in year 2017, which is reveals about the health and suitability of doing business of baby

food product at a larger context. Population of New Zealand is almost 47.9 Lac as per census of
2017.
Sources: GDP graph of the New Zealand. 2018
Illustration 1: GDP graph of the New Zealand
Il
lustration 2: inflation graph of the New Zealand

Sources: Corruption index of the NZ, 2018
As given data based diagram has revealed that GDP size of New Zealand is US$186.4
Billion (2017). After this, it has been revealed that New Zealand will be best option to sell baby
food products of B-Health.
Illustration 3: Unemployment rate in New Zealand
Illustration 4: Corruption index of the NZ

2.2: Economic environment of Honk Kong
The current response of world has reveals that economy of the Hong Kong has been
ranked as 12th largest economy with the support of business running in an economy at a greater
source or measurement (Kriström, 2015). The major strength of this economy is its role of trade
or business on an optimised stage of time. In this economy, business is highly transformed
because of implemented policies or regulation which has made doing at an ease level. As per
current report, Hong Kong is ranked 4th in ease of doing business.
Sources: GDP graph of the Hong Kong, 2018
Illustration 5: Economy of the Hong Kong
Illustration 6: GDP graph of the Hong Kong

Sources: Inflation graph of Hong Kong, 2018
Sources: Unemployment graph of Honk Kong, 2018
Illustration 7: Inflation graph of Hong Kong
Illustration 8: Unemployment graph of Honk Kong

Sources: Corruption index of the Hong Kong, 2018
Hong Kong's economic freedom since is 90.2. This is ranked as freest economy since in
2019. In this region, unemployment rate in Hong Kong is almost 3.1 percent., which shows that
doing business of baby food product is suitable and also preferable to carry on. In comparison to
New Zealand, inflation rate is 2.4 percent, which is a serious matter (Krishnamurthy, 2016).
GDP growth of Hong Kong is almost 3.5 percent, which in comparison to New Zealand is
relatively lower to pursue this business of baby food product's. Currency regulation of this
country is relatively weaker in comparison to New Zealand. For B-Health, baby food level of
business is not suitable to carry on.
3.0 Political environment and risk
3.1 Political environment of New Zealand
Political system of the New Zealand is strong, which has major support of their citizen's
to carry on functioning to develop country on a greater period of time. The current political
priorities for New Zealand is bringing of new business opportunities for people of this country to
have major control over unemployment or other related issues. Relatively, they have less
political challenges because of low crimes, theft and poverty. New Zealand and Australia both
have goof trade relationships, which shows that starting business venture is New Zealand will be
Illustration 9: Corruption index of the Hong Kong

good option with a suitability to increase employment for people and also have a growth based
strategic relationship with others (Giovino and et. al., 2012). Also, in New Zealand, corruption is
relatively very less as compared to Hong Kong, which have poverty line below 19 percent.
Hence, they have less corruption and crime in their location. Also, this has been noticed that
New Zealand government invites new business entities in their country and environment to
suitable results over given point of time. Because of this response, B-Health has suitability to
establish of business performance of baby food product to sell it in major market. Born of baby
based expectancy ratio is higher in New Zealand, which is an opportunity for B-Health to start
their business operations on a profit based level.
3.2 Political environment of Hong Kong
Political system of the Hong Kong is fluctuating, as they have continuously changes in
the government, which is a threat for their economic on a larger scale. It is because of increasing
influences of China on this region, which has simply impacts on rising opportunities for business
operations. Strength of Hong Kong political system is support to upcoming business with an
intention to rise in unemployment and maintaining interest of their citizen at a productive level
of work. Relation between Hong Kong and Australia is not in good, as this is because of import
and export conflicts between these two countries (Presenti, 2012). As a results, this will not be
favourable to open business of selling baby food products in given point of time. This will not be
suitable place for B-Health to start their business operations.
4.0 Business environment
4.1 Business environment of the New Zealand:
Market structure of the New Zealand is highly supportable to start any new business, with
support of government for longer period of time. In this response, ranking of the New Zealand is
top for ease of doing business. Major exporters to New Zealand are China, Australia, USA,
Japan etc., which has shown that New Zealand has an effective level of contracting or tie-up with
business entities to start its own business for longer period of time. Industries in New Zealand is
currently on boosting mode to start venture at a defined stage of working. Rise of infrastructure
is high in business is high in New Zealand, which is preferable for B-Health to start their own
business of baby food product at a greater denomination.

Sources: Exports Graph of the NZ, 2018
4.2 Business environment of the Hong Kong:
Hong Kong is ranked on 4th ranking for ease in doing of the business. From last many
years, Hong Kong is known for its ability to export goods to different countries. This has grew
their business image on a productive level. Hong Kong has major tie up with countries such as
India, Australia, China etc., which shows that they have business expectancy, because of China
influence on business functioning located in that region (Rao, 2016). Hong Kong also have no
more relation with New Zealand, because of increasing conflict with this region or trade issues.
As, Australia have an effective relations with New Zealand, which is critical for them to start
new business. Hong Kong has expectancy for online business, but lack of strategic relationship
with Australia.
5.0 Country choice
As per given analysis of Hong Kong and New Zealand, this has been realised that, New
Zealand is suitable to start business of the baby food product of the B-Health, as major advantage
of this location is nearer to Australia, also which is important to save cost and expenses for
export and import of the baby food products at a larger denomination. Ease of doing business is
major advantage for New Zealand to get this business to start business operations of B-Health for
Illustration 10: Exports Graph of the NZ

longer period of time. Major disadvantage is very less population with limited market scope to
sell into the market. But growth opportunity is high for this location.
Weighted Index
Particular New Zealand Hong Kong
Unemployment B A
Inflation rate A B
GDP growth A B
Corruption index B A
6.0 Conclusion
From the above report, it is majorly concluded that, New Zealand is suitable location for
this business performance. Growth and purchasing power of the customer is also high in this
nation to led development of business at a major cause. Also, it is important to raise strategic
relation with other countries to start business functioning on an optimised period of time. Also,
this is also prominent to raise start new products based business to get product efficiency or
availability to customer on a higher level.

REFERENCES
Books & Journals
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Krishnamurthy, C. K. B. and Kriström, B., 2015. A cross-country analysis of residential
electricity demand in 11 OECD-countries. Resource and Energy Economics. 39. pp.68-
88.
Katz, J., and et. al., 2013. Mortality risk in preterm and small-for-gestational-age infants in low-
income and middle-income countries: a pooled country analysis. The Lancet. 382(9890).
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