Question

1- What the New Zealand city economic situation and risks?

2- What the New Zealand city current economic opportunities, challenges, and risks?

3- Is the New Zealand city represents a good opportunity for the coffee business? And, do you recommend entering or not entering that market?

Answer 1

1) Currently New Zealand economy is a highly developed free-market economy.It is the 53rd largest national economy in the world when measured by nominal gross domestic product(GDP) and the 68th largest in the world when measured by purchasing power parity(PPP).New Zealand's exporting partners are-

a)China-20.1%

b)Australia-17.6%

c)European union-11.5%

d)United States-10'6%

e)Japan-5.3%

New Zealand has a different ype of generation,i.e.Pastoral agriculture, Hydro electricity,Forestry,Horticulture,etc.

EXPORT OF GOODS AND SERVICES=1/3 OF REAL EXPENDITURE GDP

New zealand total revenue as of 2017 was 74.11 billion.The major capital market is the New Zealand Exchange(NZX).NZX has a total of more than 258+ securities combined market capitalisation.

Risks of New Zealand economy:-

1- Liquid energy shortfalls impacting on transport.

2-Continued contamination of soil and waterways.

3-Foreigners withdrawing all their investment ala Iceland.

4- Law and Order and overregulation response from government on growing crisis,therby restricting local initiatives to build on alternatives.

5-Most of the population lives close to coast and often sea level- so many cities nd towns vulnerable to rapid sea level rise.

2) Economic opportunities for New Zealand:-

1) plentyful opportunity through medium to micro hydro, wind and tidal systems to decentralized electricity network and further increase renewable generations.

2) "Tightly coupled" political system which means that the chains of influence are relative small- this cuts both ways,it makes easier for both ordinary citizen and for big business to influence political processes.

3) Significant opportunities to close the loops of numerous waste streams such as nutrient and energy capture from sewage,putrescible waste, farming run off and forestry.

4) Dependence of past oral agricultural means there is "clear slate" with which we can redesign agriculture to incorporate appropriate water management and poly culture farming strategies i.e, re-localization of food production. Thus reducing impact of natural systems through agriculture rather than increasing impacts.

Challenges are discussed below:-

1) Highly geographically distributed population in both rural and urban areas the limiting feasibility of public transport.

2) Tiny economy-super in a weak position to sudeen changes.
3)Domestic transport 99%, dependent on fossil fuels.

4)Almost complete dominance of neo classical economic views in universities, the media ,government departments etc.both in terms of the dominance of this views within institutional dealing with economics,and the dominance of economy over other discipline.

5)Electricity generations and transmission system not well organized to get renewebly generated power to domestic consumers. for example-15% of new zealand electricity is used by Tiwai point aluminum smelter but, if this were to close, transmission contrain make it difficult to send this electricity where moat domestic consumption occurs.

6)Geographically inaccessible meaning at the end of global supply chain.

3) YES, in my opinion New Zealand represents a good opportunity for the coffee business because of the following reasons:-

1) The increased popularity of coffee has prompted a growth industry with new cafes and coffee roasting outlets springing up all over New Zealand.

2) Coffee agriculture can be one of New zealand's largest industries, employing more than 114,000 people in full time equivalent positions.

3) New Zealand ranks as the 13th largest coffee consumer in the world,ahead of the US and Australia.

4) Hence, because of huge demand for coffee, it will be benerfecial and a good opportunity for coffee business for entering in that market, as it will bring revenues and prosperity to the business.