International Business Reflective Journal: NZ Exports and FTAs

This reflective journal analyzes the role of exports in New Zealand's economy, highlighting their impact on employment, economic growth, and the balance of payments. It discusses the influence of liberal policies, reduced trade barriers, and globalization on New Zealand's export market share. The journal explores the importance of Free Trade Agreements (FTAs) and their benefits, such as strengthened diplomatic ties and enhanced economic welfare, particularly in trading with Asian countries. The author reflects on the strong trade relationship between New Zealand and China, emphasizing the significance of cultural aspects in international business and the need for effective cross-cultural training. The journal also examines the New Zealand government's policy on Foreign Direct Investment (FDI) and capital inflows, stressing the need to diversify beyond primary commodities and focus on value-adding industries to achieve sustainable economic development and global visibility. The author concludes by emphasizing the need for New Zealand to build its own strengths and competencies, along with the importance of cross-cultural training to mitigate cultural differences in business operations.

Running head: International Business 1
International Business
Reflective Journal

International Business 2
Reflective Journal
Exports play a significant role in the New Zealand economy as it has a key role in influencing
the level of employment and economic growth as well as the balance of payments. The liberal
policies, reduced taxes and tariff, lower transportation costs and globalisation have resulted in
strong market share of the New Zealand exports (Aggarwal and Urata, 2013). From the vast
research and insights about the New Zealand exports and the foreign investments, I have also
developed the notion that there is large dependency of the nation of its exports. From the insights
taken, I have identified that the Free Trade Agreements play an important role and offers
numerous benefits to the New Zealand in trading with other Asian countries. As per my
viewpoint and critical analysis, there are huge benefits of participating in the FTA as it offers
benefits such as cementing of diplomatic and political toes among the signatories, participation
of the voters and domestic lobbies and enhanced economic welfare (Kawai and Wignaraja,
2011).
From the first essay written on the international business of New Zealand and massive exports to
China, it can be said that there are strong relations between China and New Zealand as since the
last decade there has been observed a sudden increase in the percentage of the exports from New
Zealand to China and it is a strong way of fetching increased revenues and profits (Kelsey,
2015). But I have also realized atht the cultural aspects also play a vital role in the trading
between two different nations. It is not only the business but in our daily lives also if we have a
conversation with our friends, mates or relatives residing in different nations, we realize that
there is a lot of difference in their culture and sometimes the language also occurs as a barricade.
In a similar way, there are issues in the international business too when it is between two nations
which are culturally diverse, there is a need that the international managers must mange those
issue with an effective cross-cultural training. I have also learned that while engaging on any sort
of international business in future, I must attain complete knowledge of the overseas nation and
its cultural aspects so that it does not act as a barricade in my business functions.
From the second essay written on benefits and drawbacks of the FTAs and the current
improvements made, it can be said that Free Trade Agreements are of significant importance in
the international businesses as it helps the nations in having more improved trading and
exchanging business operations with proper regulation, laws and policies governing each and

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every transaction (Cadogan, 2001). I have realised that there is a huge importance if these FTAs
in the development of our countries as well as in the growth of individual organisation and
businesses too as FTAs allow the nations to participate in the business trading which are
restricted or now without these trading agreements. I can effectively analyse the importance of
these FTAs as they have offered several business opportunities to the people who want to have
export business and with these FTAs the business transactions are much easier and flexible.
From the third essay written on the New Zealand government policy on Foreign Direct
Investment and capital inflows, it has been analysed that there are some of the primary
commodities that play a dominant role on the New Zealand exports and are significantly
important for the growth and development of the country (Smallbone, et al., 2012). But it can
also analysed that there must be have a more emphasised approach over the other value adding
industries too so that they can also contribute successfully in the economic development of the
nation. In my personal experience too, it is vital that equal importance or focus must be there on
all the aspects of education too for achieving an overall improved results. In a similar way, if
New Zealand will increase the amount of capital inflows in the other value adding industries too
then it can attain more improved outcomes in terms of revenues, international expansion, market
share and global visibility.
Thus, I can say that the structure of the New Zealand economy is strong but have a major
dependency exports which is required to be managed and the nation must build its own strengths
and competencies to achieve increased level of growth and success. As well as to have a better
trading and business operations, the New Zealand managers must also opt for good cross-cultural
trainings so that issues related to cultural differences do not hamper the successful business
operations as well as it is also recommended that there must be equal focus on other industries
too to have a balance in overall growth rate of the nation.

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References
Aggarwal, V., & Urata, S. (Eds.). (2013). Bilateral trade agreements in the Asia-Pacific:
Origins, evolution, and implications. Routledge.
Cadogan, J. W., Paul, N. J., Salminen, R. T., Puumalainen, K., & Sundqvist, S. (2001). Key
antecedents to “export” market-oriented behaviors: a cross-national empirical
examination. International Journal of Research in Marketing, 18(3), 261-282.
Kawai, M., & Wignaraja, G. (Eds.). (2011). Asia's Free Trade Agreements: How is Business
Responding?. Edward Elgar Publishing.
Kelsey, J. (2015). The New Zealand experiment: A world model for structural adjustment?.
Bridget Williams Books.
Smallbone, D., Deakins, D., Battisti, M., & Kitching, J. (2012). Small business responses to a
major economic downturn: Empirical perspectives from New Zealand and the United
Kingdom. International Small Business Journal, 30(7), 754-777.