THE EFFECTS OF GLOBALIZATION IN NEW ZEALAND
1: Why Productivity?
• Firms do not aim to increase productivity but to increase profitability.
• Opportunities for profitability come from the existence of market opportunities, plusthe ability to act on those opportunities.
• The ability to act on those opportunities requires the: information, knowledge, skills, technology, and the appropriate institutional and social environment.
• Growth and investment come from the increase in profitability, which in turn drives increases in wages and land prices
• Economic growth → higher productivity
• Labour productivity –defined in terms of output per worker -is the best index of standard of living
2: New Zealand’s Productivity
Paradox
• In 1914 New Zealand was the richestcountry in the world in terms of GDP percapita (Madison 2006)
• In 1960 New Zealand was the third richest country in the world in terms of GDP per capita (Madison 2006)
• Difference between pre and post-war indices
• Downward slide 1960s to 1980s
Paradox
• NZ reasons for the downward slide?
-Trade protectionism
-Monopoly systems
-Economic structure
• External reasons for NZ’s downward slide?
-European reconstruction and integration
-Growth of Japan
DEFINITION OF 'GROSS DOMESTIC PRODUCT - GDP'
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
2: New Zealand’s Productivity
Paradox
• 1984 –1996 free market reforms and
deregulation
• Macroeconomic stability
• Low inflation
• Low unemployment
• Excellent institutional environment
2: New Zealand’s Productivity
Paradox
• World rank 1 in terms of investor
protection
• World rank 3 in terms of strength of
property rights
• Amongst the world’s most transparent and
least corrupt business environments
• World rank 9 for overall institutions
• Relatively small public sector
• Amongst the world’s lowest trade barriers
• World rank 1 for lowest labour firing costs
• World rank 7 for labour market flexibility
• World rank 1 in terms of the lowest
number of procedures to start a business
• Consistently ranked as one of the world’s
most liberalised economies
• High firm competition and turnover
IMMIGRATION
New Zealand is a beautiful country, rated a top holiday destination in the world! So it is little wonder if you are thinking about living permanently in New Zealand. The New Zealand Immigration website contains information about immigration requirements and how to obtain a residence application pack.
There are also many companies who specialise in immigration and visas and can help you work through this process.
STUDYING IN NEW ZEALAND
International students can apply for a student visa to live in New Zealand while they are studying. You can find more information on the New Zealand Immigration website.
CUSTOMS
When you arrive in an international airport in New Zealand, you will be required to pass through Customs. Customs have strict guidelines on what types of food, products and animals that may be brought into the country. You can find out more information on the Customs New Zealand website.
DUTY FREE
International airports in New Zealand have a range of Duty Free stores that sell products without the addition of local taxes. Duty free products and souveniers are a great way to snap up a bargain!
There are limits on the amount of Duty Free goods that you can travel with. You can find out more information on theCustoms New Zealand website
