Analyse an developed economy (NEW ZEALAND) as a possible site for a firm to establish a subsidiary.
Assume that you are responsible for a large Australian manufacturing firm that is keen to internationalise by establishing a subsidiary (office) in the host economy NEW ZEALAND. Consider the following issues that would help you make such a business decision:
• What political, legal, cultural and economic risks apply?
• In the context of political, legal, cultural and economic factors, what are the advantages and disadvantages of investing in each economy?
The report should be a balanced consideration of both the positive and potentially challenging aspects of each economy. Do not focus solely on the former. It should be a balanced consideration of the overall prospects for successful investment there.
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