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International Business, 8th Edition by Michael H. Moffett, Iikka A. Ronkainen, Michael Czinkota

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PART 4 CASE 1

HONEYLAND MANUKA HONEY FROM NEW ZEALAND AN INTERNATIONAL NEW VENTURE

NEW ZEALAND'S ECONOMIC ENVIRONMENT

New Zealand is a small island nation in the South Pacific south-east of Australia. Its landmass of 268 million square kilometers compares with the size of Oregon. With a slightly higher population than Oregon—just over four million (4.36 million in 2010)—New Zealand's domestic market is small. GDP per capita is about US$30.045 per year (2010), slightly more than half of that of the United States, with an annual economic growth rate of 3 percent in 2010. Virtually free access of overseas competitors to New Zealand's home market forces its numerous small and medium enterprises (SME1) to seek and develop international markets. Australia is its most important trading partner, accounting for 22 percent of New Zealand's exports, followed by the United States (11.5 percent) and Japan (9.2 percent). New Zealand relies for its economic viability mainly on the success of its SMEs, since these constitute up to 90.7 percent of all firms and provide about 50 percent of New Zealanders with work and income (Ministry of Economic Development, 2004). A 2002 report initiated by the New Zealand Treasury identified the two major constraints for economic growth in New Zealand: the distant geographic location from international markets and the difficulty of raising sufficient capital.

THE MAKING OF HONEYLAND AND ITS PRODUCTS

Honeyland is an export business specializing in native New Zealand ...

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