Intro & Overview Flashcards
International business
The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations
Multinational enterprises (MNEs):
a multi-plant firm that controls and coordinates operations in at least two countries; big or small
Trade
consists of exports and imports:
Exports:
goods and services produced in one country and then sent to another country
Imports:
goods and services produced in one country and bought in another country
Foreign (Direct) Investment:
equity funds invested in other nations
Economic Globalisation:
the growing interdependence of locations and economic actors across countries and regions; 21st Century process, not event; pros & cons; versus localisation; not equal; regional, not global
NZ is a major agronomical world player
Biggest exports (2020: Dairy 19% exports; Meat & offal 10%; fruit 4%; milk preps 3%; wine 2%; fish 2%; casein 1%; wool 1%)
Then come primary industries
wood 5%; crude oil 1%; wood pulp 1%
Manufacturing fairly important but long way behind
mechanical machinery 2%; aluminium 1%; electrical machinery 1%; optical & medical equipment 1%; iron/steel 1%; plastics 1%
Service industries crucial within NZ
-72% employment; 2/3rds NZ GDP, divided into:
Retail/wholesale (18% of services GDP)
Real estate/rental (18%)
Prof/admin (15%)
Who is NZ largest trading partner?
Since 2014, China has become our largest trading partner. 2020: 23% NZ exports, 16% imports (more than Aus) & trade surplus (first FTA 2008)
Who is NZ second-largest trading partner
Australia 2nd through ANZCERTA, with 16% of our exports & 16% of our imports; plus top investment source/destination
Who is NZ third-largest trading partner
US 3rd: 11% exports & imports (exports down from 12% 2014), but dairy quotas; (Trump’s protectionism?)
Who is NZ fourth-largest trading partner
Japan 4th: 5% exports & 5% imports but other Asian countries becoming important
