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Discuss about the SWOT Analysis of New Zealand.

Driven by domestic requirements, activities are depending on to stay firm in the year of 2018. Household’s utilization of resources will probably be supported by higher wages, falling joblessness (4.6% in October 2017), and proceeding with low loan costs or lower bank interests (1.75% in November 2017). What's more, lower income group families will get expanded family remittances, a 5% expansion in the lowest pay permitted by law, and a lessening in pay impose (Conway, Meehan & Parham, 2015).

Exports are set to be rejuvenated, on account of the enhancing terms of trade connected with rising milk costs (one-fourth of fares), and by firm outer request. The arboriculture (apple and kiwi) and wood areas are additionally liable to perform better. Nonetheless, the level of obligation among agriculturists is high because of the need to balance misfortunes caused by diligent low costs. Therefore it implies that they are powerless against value developments and any real atmosphere stun such as dry seasons, quakes. The tourism industry in the country is likewise being anticipated that it would perform unequivocally, in spite of the fact that its commitment to development will probably be much lesser.

The fiscal approach forced by the national bank is probably going to be less cooperative in 2018, because of the objective of keeping up rising at its objective level (1-3%). The stoppage in the property showcase and in credit will help confine the dangers related with higher financing costs. The lodging market is required to contract as a result of the decrease popular connected with the abundance cost of lodging, the elevated amounts of family unit obligation (170% of extra cash) and the diminishment in migration. The development part is probably going to feel the impacts of this stoppage, and furthermore to experience the ill effects of a work deficiency.

The budget planning is required to be closely adjusted. Spending on social and medicinal services is set to keep on being the principle consumption thing, particularly as these are because of ascend under the "Family Income" program. This spreads pay does not include the ones on low wages, and in addition increments in family allowances may be required. Generous framework ventures are additionally expected, along with the remaking of the streets and railroads harmed in the November 2016 noteworthy seismic tremor. The expansion in spending ought to be constrained, in any case, and balance by a slight increment in incomes. Moreover, the nation should discover a method for managing an expanding shortage in its government managed savings framework (maturing populace).


The record from the past financial year may be required to decline somewhat in 2018. This is liable to an auxiliary deficiency because of the salary adjust shortfall (3% of GDP in 2016) connected with the reimbursement of outside obligation (90% of GDP), the low residential funds rate, and the outward exchange of benefits by remote firms. In addition, the adjustment of exchange is set to stay in shortage (1% of GDP), as the development of fares will even now not cover that of imports. The adjustment of administrations, nonetheless, ought to be in excess (1.8% of GDP), for the most part on account of tourism.

The New Zealand government managing an account area is basically all around promoted, in spite of the fact that the low family unit investment funds rate implies that banks need to get on the money related markets and are in this way presented to their instability. The level of focus in the part – only four key banks (predominantly backups of Australian banks) – and high family unit obligation levels are additionally potential zones of powerlessness.

The weaknesses are as follows:

  • Very geologically scattered populace in both rustic and rural territories restricting the plausibility of open transport.
  • Geographically secluded importance toward the finish of the worldwide inventory network.
  • Very small existing assembling
  • Noteworthy measures of staple sustenance are imported, for example, grains and heartbeats.
  • Traditional grain developing zones are being changed over to dairy
  • Dependence on noteworthy measures of imported manufactured organic matters
  • High rate of auto proprietorship
  • Remote responsibility for any general industry
  • Minor economy - super defenceless against sudden changes
  • Very urbanized
  • No long culture of nearby network life, most towns are spread out and do not have a genuine focus
  • Wellbeing and medicinal supplies on the whole are imported including contraceptives (it's a subset of the more broad point about the absence of nearby assembling)
  • Local transport 99% reliant on petroleum derivatives
  • Unavoidable culture of the private auto
  • Administration courses of action at each level (nearby, territorial, national) which support autos and streets over different methods of transport
  • Poor urban, and exceptionally poor country and  inter-city, rail connections and numerous services

Power age and transmission framework not efficient to get sustainably produced capacity to local shoppers: for instance, 15% of New Zealand's power is utilized by the Tiwai Point aluminium smelter, be that as it may, if this somehow happened to close, transmission imperatives make it hard to send this power to where most residential utilization happens (O’Callaghan &Graetz, 2017)

  • Political intensity of resources-extraction businesses, e.g. Strong Energy (coal SOE)

Relatively total strength of neo-classical ("liberal") monetary perspectives in Universities, the media, Government divisions etc: both as far as the predominance of these perspectives inside foundations managing financial matters, and the strength of financial matters over different disciplines.

  • Dependence on horticulture implies there is an "unmistakable slate" with which the country can overhaul agribusiness to join suitable water management and poly-cultural cultivating systems that is the re-localisation of nourishment creation. In this manner lessening sway on regular frameworks through farming instead of expanding impacts
  • Abundant open door through medium to small scale hydro, wind and tidal frameworks to decentralize the power lattice and further increment inexhaustible age.
  • Spread out nature of rural sprawl leaves chance to fuse neighbourhood nourishment generation into medium thickness populace regions using current no man's land, street borderlines, parks and terraces.
  • Significant chances to close the circles on various waste streams, for example, supplement and vitality catches from sewage, putrescible waste, cultivating run-off and ranger service.
  • National cash with little populace makes swap to elective money related framework (i.e. intrigue free) less demanding, particularly if current cash would end up insecure (because of monstrous remote devestment)

Numerous potential sustainable power source assets are as a rule scarcely used at display - for instance, New Zealand has preferred sun based vitality potential over Germany, yet utilization of sun based vitality (both aloof and dynamic) in New Zealand is tiny, in light of the fact that present approaches, lodging controls and so on in New Zealand don't support the utilization of sun powered vitality.

"Firmly coupled" political framework is a great opportunity for the country’s economy management that implies that the chains of impact are moderately little - this cuts both courses, as it makes it simpler for both normal nationals and for huge business to impact political procedures.

  • 'law and order' and overregulation response from government on growing crisis, thereby restricting local initiatives to build on alternatives
  • Existing lineal/modern worldview
  • Liquid energy deficits affecting on transport.
  • Continued defilement of soil and conduits
  • Handy solution band help arrangement
  • 'lawfulness' and overregulation reaction from government on developing emergency, in this manner confining neighbourhood activities to expand on options
  • The greater part of populace lives near the ocean, and regularly not far above ocean level. Therefore in this way, numerous urban communities and towns tend to be defenceless against fast ocean level ascent
  • Likely short-to-medium impacts of environmental change on New Zealand incorporate more dry seasons in east of the two islands, all the more overwhelming precipitation and flooding in the west - both debilitate sustenance creation
  • Likely flood of atmosphere exiles, right off the bat from Pacific Islands and Australia, therefore this is a risk just in the event that it overpowers our frameworks' ability to retain extra individuals

It has been observed that around 8,000 people are occupied with the minerals industry in New Zealand. These are lucrative occupations securing more than $105,000 which is more than twofold the national ordinary wage of $50,000(Furtado, 2018). Each one of these 8,000 jobs reinforces a family and a family in regions and systems that much of the time don't have the openings for work that gathering and establishment gives in urban territories all through New Zealand (O’Connor, Lucey&Baur, 2016).


In different domains, for instance, the West Coast, Coromandel and Taranaki, mining expect an extensive part in supporting the commonplace economies. On the West Coast for example, 40% of neighbourhood GDP is earned particularly from mining, essentially gold and coal. In light of the high wages related with the mining business. Different zones which can abuse their customary resources tend to have the most part high family pay rates off a little impression. It can be observed that no other land-use acquires about as much per hectare. The high family compensation on the West Coast start from a sense of 14km, diverged from the total zone of the region of 23,000km2 (Nielsen et al., 2015).

At the Macraes mine in East Otago, for example, it is assessed that it would take 767 years to win from developing the aggregate earned from mining, off the mine impression. In addition, the opencast mining methodology used at Macraes suggests that as mining propels, the outcome is returned to beneficial contacting use. Without a doubt, the re-established land at Macraes is more beneficial than pre-mining. This is an ordinary outcome is observed when it is mined and later returned to cultivating use (Furtado, 2018).

The Ministry of Business, Innovation and Employment division report 2013 recognized that the minerals and oil and gas fragment is considered to have an enormous monetary responsibility to the NZ economy. This industry has exhibited the following statistics in the past financial year:

  1. Total national output responsibility 2.5%
  2. Tolls 6.2%
  3. Ordinary wage: $105,000 multi-year
  4. Work productivity: $333 consistently worked (cf. NZ typical of $48)

These bits of knowledge display that mining is a high regard part making awesome income for New Zealand masters and their families, generally in districts and systems that don't have immense collecting ventures to give occupations (Conway, Meehan & Parham, 2015).

A self-sufficient report for OceanaGold New Zealand Ltd found, in 2016, $330 million, or 88% of the company's utilization on its family exercises reached people and associations in New Zealand through wages and procurement".

Mining is a $2 billion industry and most of that - $1.1 billion – picks up exchange dollars for New Zealand. A significant degree of that passage benefit is from coal. Coal in like manner has a basic effect in fuelling our neighbourhood current methodology, with 72% of the 2.8 million tons of coal ate up locally going towards this reason, and to a lesser degree in control age (Kelsey, 2015). In case coal were not mined in New Zealand, eventually it would have been necessary for the government to import from outside.


The examination costs and investments, which are required to make mining assignments, indicate that tremendous overall associations are sometimes anticipated. The focal point of this abroad theory provides for New Zealand direct goes to workers and their families, to neighbourhood subcontractors and to central and adjacent government through appraisals, eminences and rates (Lamare et al., 2015).

The overall culture of New Zealand is influenced by the western culture with adequate amount of cultural input from the Maori community and other ethnic groups residing in the island. There has been a major change in the identity and population of the country in the past twenty years and eventually the outcome was a major lack of the consensus on the cultural identity of New Zealand (Conway, Meehan & Parham, 2015). New Zealand is also a country where multiple communities, races and languages reside however; many scholars have indicated that it seems that they are still living in different communities, therefore it can also be observed that the citizens lack the sense of unity in them. New Zealand has also been a colony for the British for a long time, therefore there are still a huge number of people who tend to move to Britain for working and living further, even some of the older citizens tend to refer Britain as the mother country of New Zealand. Considering the recent cultural environment in the country, it can be observed that the New Zealand identity is still building; however there has not been much racial turmoil in the country (Furtado, 2018). The numbers of Asians are growing in the country along with the Muslim refugees coming from Iraq, students and workers from South Korea and Indian subcontinent and China. On one hand, it is a positive part of the culture of New Zealand that the country accepts races, communities and cultures all over the world; on the other hand, it can be found out that the new Zealanders are moving abroad. Most of the young New Zealanders consider their country to be too much isolated or too much small for having more exposure in life (Vernon, 2014). Therefore, major cultural difference can be seen in the country. As a result, it can be said that a significant cultural change needs to be done in New Zealand which will keep the citizens in the country yet it will accept the multiculturalism with open arms. Even though racial backlashes are not much often in the country, with the growing numbers of Asians and decreasing population of New Zealanders have triggered this issue to a great extent (Hicks, Basu & Sherley, 2014). Most of the times, it can be found out that the Asian immigrants are being openly blamed for the developing tackiness in the shopping districts in the cities where the bulk buying takes place and the organic food delicacies are found (Washington & Twomey, 2016). At the same time, with the growing numbers of terror attacks in different parts of the world, racial backlashes against the Muslim immigrants are increasing as well. Even after the London terror attack, a lot of vandalisms have taken place in different parts of the country, especially in a mosque in Auckland (Kelsey, 2015).

This also has a great impact on the domestic industry as the national market is not yet a big one, many might consider that they should settle in the UK, Canada or Australia to get exposed to a much bigger labour market. Therefore he ongoing cultural and racial backlashes should be change immediately so that the multiculturalism can be accepted in the country and at the same time the New Zealanders can stay in the country to get engaged with the industry. This can influence their business sectors in a positive way.

With the commencement of the ongoing crisis of the neoliberal economy, the world has faced a major economic collapse and several changes can be observed in the societal scenario. New Zealand has already come a long way for accepting the diversity in the ethnic cultures and accepting the social difference, however it still has a long way to go. Most of the scholars indicate that the changes can mostly be observed in the theories as the country may have a symbolic biculturalism, but in reality most of the residents are still reluctant in redistributing the resources (Whiting, Hansen & Sen, 2017). Considering the theoretical aspect, the country has secured respect and equality between various communities; however it still needs to evolve for improving the inter-race relations in the country. At the same time, with the increasing numbers of the immigrants, the current social scenario of the country can be considered as more conservative (Kelsey, 2015). The New Zealand government has worked quite a lot in improving the situation of the Maori community such as expanding their culture, teaching their language in the schools all over the country, establishing a separate ministry for the Maori affairs; it can still be observed that the Maori community tend to lag behind (Vernon, 2014). In addition to that, it can also be said that not only the Maori community, but the immigrants coming from various countries have also faced various kinds of discriminatory behaviour in the country. As stated by Wepa (2015) in some urban areas, a quiet undercurrent of discrimination can be observed towards the recent immigrants and the socially minor sections. It can also be observed that during the 70’s and 80’s, the immigration policy of New Zealand has finally stopped favouring the descendents from the European continents and started accepting the immigrants from various parts of the world based on their economic assets, skills and others (Nielsen et al., 2015). There can be several instances of continuous conflicts between the immigrants, Maoris and the other descendents of the country such as shouting at the immigrants standing at the traffic, even throwing garbage towards them as revealed in the recent news (Discrimination against Asians in New Zealand grows, 2018). Therefore, it can be easily said that following the current social scenario, the country requires a sense of equality in the overall society. In addition to that, it can be said that with bringing more equality in the societal structure of New Zealand the country will be capable of keeping their skilled assets in the country who mostly plan to move to UK, Australia or Canada so that they can get more exposure and a globalized labour market. The rising instances of discrimination should be immediately taken care of and the communities and the government should take effective measures to prevent it. Another change that can be brought in the societal structure of New Zealand that can improve their business sector and enhance its globalization that if the residents start accepting the immigrants on the basis of their expertise (Washington & Twomey, 2016). An industry can only be enhanced if it includes skilled employment and a globalized workforce. However in most of the scenarios, the New Zealanders tend to consider the immigrants to be sealing their jobs, however in reality the Asian immigrants are more skilled and have more potential to do their jobs. Therefore in place of back lashing them for moving to a new country, the New Zealand society should accept them wholeheartedly.

Considering the current scenario in New Zealand, it can be found out that the country is facing significant issues related to housing. According to a recent survey, most New Zealanders face housing related concerns including increasing price of the houses and less affordability of housing and shortage of houses therefore a large number of the population stay homeless (Rees, 2017). With the increasing economic crisis in the world, the refugee crisis issues are increasing as well. In addition to that, most of the New Zealanders consider that the government should bring a major change in the housing policy to deal with these two major housing related issues (Ruwhiu & Carter, 2016). The increasing prices of the houses are a vital issue in the country but at the same time shortage of houses is also considered to be a much bigger problem. Therefore it can be said that New Zealanders need to see more involvement from the governments through different programs so that the residents do not face any such problems like homelessness or increasing price of the housing (Leonard, 2016). The government of New Zealand should immediately provide a certain amount of subsidies while building the housings so that the citizen can buy these in a less price. At the same time they can also bring a change in the housing policy by banning the foreign investments on buying the existing housings. By bringing the change and a major restriction of buying the dwellings by the non-residents, the government can effectively reduce the housing related problems of the residents. This can also effectively impact the mining business industry as it can be observed that most of the dwellers tend to leave the country for getting a better exposure of the bigger labour market, therefore the mining industry faces a major shortage of labours (Rainey et al., 2015). The government has taken a positive step in this matter by introducing the KiwiBuild program which aims to provide 100.000 good quality and affordable homes for the first time buyers over the next few years. This is undoubtedly a significant change in the recent government policies, however more such innovations may be required to modify the previous housing policy. With the effectual changes in the housing policies, the government can be able to keep them in the country as well. At the same time, the New Zealand government also requires a major change in their immigration policy. A recent survey reveals that by the year 2020, the Maori population in the country is expected to increase 29% from that of the year 2001, whereas the Asian population is expected to increase by 145% from that of the year 2001 (Rees, 2017).

Many indicate towards the increasing crime and frauds within the country and blames the immigrants due to this reason, therefore it can be said that even if the country experiences multiculturalism on a regular basis, it has not yet much successful in establishing it. Therefore, it can be said that the governments needs to change their immigrants policy to some extent to control the continuous racial backlashes experienced within the country. As stated by Washington & Twomey (2016) it is still a long way to go for changing the overall culture of the country and integrating multiculturalism in New Zealand. The people here still fail to accept the idea of different communities and races residing together. Therefore, there is also a sense that due to the increasing amount of immigrants the labour market especially in the mining industry has been taken over. Therefore the government requires changing the immigration policy in a way that it does not harm the residents and the non-residents in the country at the same time. There have been numbers of protests and marches going on in support of the anti-racial movements of the country (Ruwhiu & Carter, 2016). The government also needs to consider the fact that most of the residents are open minded about immigrants but they are being insecure regarding people coming from entirely different communities and backgrounds whereas they also fear about the major decrease in the job market. However, with the changes in the political policies, the government can deal with this situation.

From the above discussion, it can be found out that these changes will eventually bring a positive change in the overall culture of New Zealand and it will also enhance their business sectors by globalizing it. With the cultural and social changes such as accepting the immigrants, bringing more equality in the societal structure, bringing adequate social changes to keep the skilled labours in the country, the business sectors will be improved to a great extent. As stated by Whiting, Hansen & Sen (2017) if the skilled labours can be received from the country itself, the organizations do not need to pay more to the non-residents. However, it should be noted that in order to globalize the business sector, the country requires to accept the various races and communities from all over the world. As multiculturalism has not yet been much accepted in the society, it should be more improved with the help of the governmental policies. However, with the change in the housing policy, it is highly possible that the immigrant population may not be much satisfied; however the improved immigration policy can eventually bring a sense of equality and at the same time a sense of unity in the country. Necessary changes in the housing policy can bring solution to many New Zealanders as it can provide good quality homes in affordable prices. The rising prices of housing in the country has increased the homelessness in the country, therefore with the help of more programs like KiwiBuild, the government can make a difference in their lives. However, it should be noted that more residents should be included in such programs so that the government can move forward to an overall good for the country. The immigration policy may be considered as a bad one, yet it can still be improved to such a degree that the government of New Zealand can enhance its effectualness to a great extent.


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