Introduction
New Zealand is an Island Nation found within the Pacific Ocean. The country has a population of about 5.084 million people. The country is known for its value system, mainly run by the people’s Māori culture. For the International company to expand to New Zealand, ethical and legal implications must be gauged to analyze whether the country will be good for business. This paper describes the business environment in New Zealand and its impact on business in case the company expands there.
According to the New Zealand Treasury (2020), the country enjoys an open economy that is governed by the principles of the free market. The economy of the country is also sizeable, with a GDP of 212.5 billion (World Bank, 2020). The country’s economy mainly runs on agriculture and manufacturing sectors. Moreover, exports are an essential contributor to the country’s GDP, with about one-third contribution annually. The 2022 index ranked New Zealand as the fourth freest economy with an economic freedom score of 80.6 and second compared to thirty-nine Asian Pacific countries. The ease of doing business in the country is also high, making it a potential country for investment for both local and international investors.
In the political sphere, New Zealand is considered a constitutional monarchy. The country is governed by the queen, whose rule is considered sovereign, with the government ministers as her key advisors. The ethical sphere in New Zealand is governed by the Royal Society Te Apārangi’s Code of Professional Standards and Ethics, which businesses and individuals are expected to follow (Ballingall et al., 2020). The code of ethics focuses on ethical issues such as informed consent, confidentiality, constructive dismissal, ethics in technology use, voluntary participation, privacy, and staffing levels. The country’s ethics is also greatly influenced by its rich Māori culture. Additionally, any business expanding to the country must consider its legal systems. Business in New Zealand is governed by laws such as taxation, Intellectual property laws, dispute resolution, employment laws, customer and supplier relationships, health and safety, and premise laws. Additionally, by joining a Regional Business Partner Network, businesses in New Zealand can apply for grants, loans, and other funding arrangements for startups and small and medium business enterprises (SMEs) (Ballingall et al., 2020).
For a business to thrive in the country, it must focus on political, ethical, and legal considerations. The political considerations help analyze how the business will be affected by the country’s politics, especially if the parent country is not a monarchy. Additionally, ethical considerations are essential in determining how the businesses will be expected to relate to its employees and other businesses. Culture also affects what is considered important to the people, making it essential for the organization to analyze its favorability. Apart from politics and ethics, legal considerations are the most important. The company has to ensure that it operates legally according to the laws governing local and international businesses in the country.
In conclusion, despite the legal, ethical and political considerations, expansion to New Zealand would be a profitable move for the international printing company. The freedom and ease of doing business in the country fueled by its integration to the world economy will ensure its productivity and growth. Additionally, the company will also contribute positively to the country’s GDP, making it more open to other international investors.
References
Ballingall, J., Dorigo, E., Hogan, J., & Lees, K. (2020). A news-based approach to monitoring trade policy uncertainty in a small open economy: The case of New Zealand (No. 20/09).
The Treasury. The New Zealand economy. (2020, April 14). Retrieved March 20, 2022, from https://www.treasury.govt.nz/information-and-services/new-zealand-economy
World Bank (2020). New Zealand Data. Data.worldbank.org. https://data.worldbank.org/country/NZ
write