Government Policy Of FDI In New Zealand †MyAssignmenthelp.com

Question: Discuss about theGovernment Policy Of FDI In New Zealand. Answer: Introduction The continuous and rapid growth and development of New Zealand is extremely depended upon the exports as it is the key function from which funds are generated for the nation. The export function also has some of the primary commodities over which it is relied upon that includes commodities like horticulture products, marine products, wool, meat and dairy. And because of this reason only the foreign direct investments are also more concerned with these areas and the maximum inflow of capital is to strengthen these sectors only (Kelsey, 2015). The paper will critically discuss the government policy of FDI in New Zealand and will also recommend changes for the improvements and enhancement of other value adding industries too. New Zealand government policy on Foreign Direct Investment and capital inflows New Zealand has a welcoming and an open attitude towards the foreign direct investments as well as recognized a positive impact it led upon the social as well as economic well being of the residents of the country. The government policy and the regulations that govern the foreign direct investments are liberal in context with the international standards and there are only few particular foreign investments which have restrictions because of the crucial interest. All the investments possess a certain degree of risk. Moreover, it is recognized that foreign direct investment in all aspects are economically good for the country. From the perspective of the global economy and the economy of New Zealand, there are strong positive implications of the foreign investments and the supportive government policies (Prince, 2010). Therefore, the foreign investors seek beneficial and good commercial opportunities in the regions of New Zealand which are further attracted by the availability of the r esources, stable business environment and liberal FDI regime. There are numerous benefits of these extensive foreign investments such as higher wages, increased employment rate, firm productivity, international trade and economic growth and thus Government has liberal policies and regulations so that it can support upsurge FDIs and capital inflows in the nation (Kelsey, 2015). The exports of New Zealand are primarily relied upon few of the specific commodities and they only dominate the export function of the country. The key commodities comprises of horticulture products, marine products, wool, meat, forestry, dairy, seafood and sheep and beef. But focusing on only these segments can restrict the overall growth and developmen6 of the country and its economic development. There is a need that the government polices must have certain changes so that there can be increased amount of capital inflows into the various other value adding industries of the nation too (Willer and Lernoud, 2016). There are various other potential and value adding industries both in terms of products and services that can help New Zealand to grow with a faster rate by investing in those industries. Few of the key significant services and industries comprises of the transport services, machinery including computers and other electronics, manufacturing g of fertilizers and pesticides, consulting andmanagement services, scientific research, agricultures support services and veterinary services (Zealand, 2013). All these industries, products and services have a strong future capability to grow and expand and offer potential returns. Thus, it recommended that the policies and regulations must be change so that these industries can boom and expand too. There can be a subsidy offered to the companies investing in these industries as well as tariff rates can be reduced and taxes can be decreased on the business of these specific industries so that more capital inflows can take place. Restricted rules, liberal policies and increased profit margin can together result in strong and enhanced investments in all these mentioned industries and thus the nation can also have a major contribution of these industries in the economic development (Kelsey, 2015). Conclusion The above paper has highlighted the significant role of some of the primary commodities in the economic development of New Zealand as these are the commodities which have a dominating role in the New Zealand exports. From this paper, it can be concluded that the government policies regarding the foreign direct investments are very liberal and support the continuous and upsurge capital inflows in the nation. But fro0m the overall perspective, it is also essential that there must also be equal focus given on the other commodities that are supportive and secondary as there are also the value adding industries which can help the country to achieve increased level of economic development and growth. References Kelsey, J. (2015).Reclaiming the future: New Zealand and the global economy. Bridget Williams Books. Kelsey, J. (2015).The fire economy: New Zealands reckoning. Bridget Williams Books. Kelsey, J. (2015).The New Zealand experiment: A world model for structural adjustment?. Bridget Williams Books. Ministry of Primary Industries, (2014). Future capability needs for the primary industries in New Zealand, Pp.142. Retrieved on: 7th September, 2017, Retrieved from: https://www.google.co.in/url?sa=trct=jq=esrc=ssource=webcd=3ved=0ahUKEwiK-oLD-pbWAhXMLo8KHcj7CLMQFggyMAIurl=https%3A%2F%2Fwww.mpi.govt.nz%2Fdocument-vault%2F3893usg=AFQjCNFSTuu1f4bfzD3xtnGkFiv2Umqvhw Prince, R. (2010). Policy transfer as policy assemblage: making policy for the creative industries in New Zealand.Environment and Planning A,42(1), 169-186. Willer, H., Lernoud, J. (2016).The world of organic agriculture. Statistics and emerging trendsmanagement 2016(pp. 1-336). Research Institute of Organic Agriculture FiBL and IFOAM Organics International. Zealand, S. N. (2013). Global New ZealandInternational trade, investment, and travel profile: Year ended December 2013.