STRATEGY MARKETING PLAN FOR EXPORT OF ALPACA CHULLOS TO NEW ZEALAND

INTERNATIONAL MARKETING
PROFESSOR ANGLAS SANCHEZ, ENRIQUE CYCLE VIII ROOM 814 SEMESTER 2012 I

COORDINATOR: MEMBERS: COBIAN ALIAGA, CARLOS DOMINGUEZ IPANAQUE, DEYANIRA HUAMN GRANDA, NOLY MAX CERCADO, JONATAN MIYASHIRO AGUIRRE, MITSUKO SUREZ SIESQUEN, SARA

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INDEX

1. DECISION TO INTERNATIONALIZE YOUR BUSINESS 2. INFORMATION ON THE PRODUCT CHOSEN TO EXPORT 3. INFORMATION ON THE SELECTED FOREIGN MARKET 4. STUDY SITUATION: THE TARGET MARKET 4.1 ECONOMIC 4.2 LEGAL 4.3 POLICY 4.4 CULTURAL 4.5 SOCIAL 5. TARGET MARKET SEGMENTATION, POSITIONING 6. PROCESS OF SELECTION OF MARKETS 7. STRATEGIES OF INTERNATIONAL MARKET ENTRY I 8. STRATEGIES OF INTERNATIONAL MARKET ENTRY II 9. MARKETING MIX (PRODUCT) 10. MARKETING MIX (PRICING) 11. MARKETING MIX (PLACE) 12. MARKETING MIX (PROMOTION) 13. ORGANIZATIONAL STRUCTURE

CONCLUSIONS

ANNEXES

BIBLIOGRAPHY

AND

SOURCES

OF

INFORMATION

(INCLUDING

INTERNET ADDRESS)

ALPACA CHULLOS
PRESENTATION

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NEW ZEALAND

1. Decision to internationalize your business

2. Information on the product chosen to export The chullo (Aymara, Quechua, ch'ullu) is a cap with ear tissue of alpaca or other animals and in combination with synthetic fibers. Native to the Andean highlands, where it is used for protection from the harsh cold of the highlands. Usually accompanied by colored drawings. In each region, especially in the high Andes, exist not only in variety of colors but also in its use ranging from the everyday as identifying who holds public office or who are single to name a few. 3. Information on the selected foreign market Name: New Zealand - Abbreviation: NZ Citizenship: New Zealander Capital: Wellington Independence: 26 of September 1907 (from England) Location: Oceania, South East from Australia Coordinates: 41 00 S, 174 00 E. Climate: mild to cold with regional contrasts Area: 268.680 km Coastline: 15.134 km Marine Claims: 12 nautical miles- economic zone inclusive: 200 nautical miles Terrain: predominately mountainous, coastal plain Highest peak: Mt. Cook with 3.754 meters located in the south island. Natural Hazards: Earthquake, Volcanic eruptions, cyclones, Tsunamis, blizzards, landslides

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Natural Resources: Gas, Iron, sand, coal, wood, gold, thermal energy. Population: 4 million (2005) NZ Population Clock: 4,433,983 (May 2012)1 Sex: 49.9% Males- 50.1% Females Life Expectancy: ALL 78 years Men 76 - Woman 82 Population Growth: 1% per year Death Rate: 7.5 / 1000 population Median Age: 34 years Ethnic Groups: European descendent 74.5% - Maori 9.7% - Asian 7.4% Pacific Islander 3.8% - Other 4.6% Migration rate: 4 / 1000 New Zealander Religions: Anglican 14.9%, Roman Catholic 12.4%, Presbyterian 10.9%, Methodist 2.9%, Pentecostal 1.7%, Baptist 1.3%, other Christian 9.4%, other 3.3%, unspecified 17.2%, none 26% Official Languages: English and Maori. Literacy: Above 15 years 99.9% Adult: 18 years Military service: From 17 years and voluntary Government: Parliamentary Democracy Government Leader: Prime Minister John Key, National Party ( 2008). Legislative Powers: House of Representatives - commonly called Parliament. 120 seats. 69 members elected by popular vote in singlemember
1

constituencies including

Maori

constituencies,

and

51

Available in: http://www.oficinascomerciales.es/icex/cma/contentTypes/common/records/mostrarDocumento/0,,,0 0.bin?doc=4495694

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proportional seats chosen from party lists, all to serve three-year terms. Voting is voluntary. . Political Parties: ACT New Zealand - Green Party - National Party - New Zealand First Party - New Zealand Labour Party - Progressive Coalition United Future Divisions: There are no states but administrative regions including: Auckland - Bay of Plenty - Canterbury - Chatham Islands (Considered a territory) - Gisborne - Hawke's Bay - Manawatu and Wanganui -

Marlborough - Nelson - Northland - Otago - Southland - Taranaki - Tasman - Waikato - Wellington - West Coast National Days: 6 of February - Waitangi Day. The Waitangi Treaty was established on 6 of February 1840, and it marks the beginning of the New Zealand liberation from Britain International Agreements: Kyoto Protocol - Ozone Layer Protection Environmental Protocol - Marine Living Resources - Antarctic Treaty Biodiversity - Desertification - Endangered Species - Environmental Modification - Hazardous Wastes - Law of the Sea - Marine Dumping Ship Pollution - Tropical Timber - Whaling Economy: Export of industrial and agricultural products. Growth in the technologic sector. Tourism has a large contribution to national income, with New Zealand being considered the world capital for Extreme sports. GDP: US$ 162.066 GDP per Capita: US$ 36.771 per year (2011) Income: average week NZ$ 538 Work Force: 2 million Population below poverty line: 0 Inflation rate: 2.4% per year Interest rates: 4.6% per year 5

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Unemployment rate: 6.7% Currency and exchange rate New Zealand dollar 1 NZD = 0.8125 U.S. $ = 0.6162 (3 May, 2012) 4. Study situation: the target market

4.1 Economic New Zealand's economy historically has been based on a foundation of exports from its very efficient agricultural system. Leading agricultural exports include dairy products, meat, forest products, fruit and vegetables, fish, and wool.

The country has substantial hydroelectric power and reserves of natural gas. Based on recent natural gas exploration between Australia and New Zealand, natural gas production is projected to increase by 3.5% by 2020. Leading manufacturing sectors are food processing, wood and paper products, and metal fabrication. Service industries, particularly financial, insurance, and business services, form a significant part of New Zealand's economy. As of July 2011, the number of broadband subscribers continued to grow, and exceeded 1.5 million. The number of broadband subscribers made up 85% of all Internet subscribers.

Since 1984, government subsidies including for agriculture were eliminated; import regulations liberalized; tariffs unilaterally slashed; exchange rates freely floated; controls on interest rates, wages, and prices removed; and marginal rates of taxation reduced. Tight monetary policy and major efforts to reduce the government budget deficit brought the inflation rate down from an annual rate of more than 18% in 1987. The restructuring and sale of government-owned enterprises in the 1990s reduced government's role in the economy and permitted the retirement of some public debt. As a result, New Zealand is now one of the most open economies in the world.

After five consecutive quarters of economic retrenchment, the New Zealand economy ended its recession in the June 2009 quarter, growing by less than 0.1%. Another brief return to negative growth in 6

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September 2010 followed a first earthquake in the Canterbury region, and a sluggish recovery was further hampered by a second earthquake in February 2011. Economic growth is forecast to remain weak for the next 2 years as households go through a period of debt consolidation and government spending is further cut. New Zealands AA+ foreign currency rating was downgraded to AA by Standard & Poors in September 2011 as a result of increasing net foreign liabilities and household debt being an average 156% of disposable income. Economic activity has been increasing, with a rise in GDP of 1.8% recorded in September 2011. An export-led recovery is expected to lead to growth of around 2.7% in 2012, with partial sales of some state assets, reconstruction in Canterbury, and increased mineral

exploitation. The hosting of the 2011 Rugby World Cup provided a short-term boost to the economy, but it has been difficult to quantify net benefits and long-term gains. New Zealand's unemployment rate rose to 7.3% in the last 3 months of 2009, its highest level in more than 10 years. The countrys unemployment rate as of June 2011 stood at approximately 6.5%. New Zealand's unemployment rate was lower than the Organization for Economic Cooperation and Development (OECD) average of 8.6% and was ranked 12th of 27 OECD countries with standardized unemployment rates.

New Zealand experienced a net migration loss in 2011, through the highest-ever recorded net permanent and long-term (PLT) loss to Australia of 36,900 people. This was offset by 14,200 arrivals from Australia, and net gains were experienced from most other countries, led by the United Kingdom (5,500), India (4,900), and China (4,700). In late 2011 the United States saw gains in short-term visitors from New Zealand, up 1,500 over the previous year, an increase of 55%. Shortterm visitors from the United States were down 2.6% in the year to December 2011, with 184,714 visitors over that period. The largest sources of visitors over the year to December 2011 were from Australia, the United Kingdom, the United States, China, Japan, and Germany. The most popular destinations in the same year for New Zealanders were Australia, the United States, Fiji, the United Kingdom, China, the Cook Islands, and Samoa.

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Traditionally, New Zealand's economy has been helped by strong economic relations with Australia. New Zealand and Australia are partners in "Closer Economic Relations" (CER), which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 22 million people, and this has provided new opportunities for New Zealand exporters. Australia is now the destination of 23% of New Zealand's exports, compared to 14% in 1983. Both sides also have agreed to consider extending CER to product standardization and taxation policy. New Zealand has had a free trade agreement with Singapore since 2001. In July 2005, both countries joined with Chile and Brunei to form a Trans-Pacific Strategic Economic Partnership (TPP), liberalizing trade in goods and services between them. On September 22, 2008, comprehensive negotiations for the U.S. to join the TPP were launched. In December 2009, President Barack Obama announced that the U.S. was interested in reengaging on TPP. The 11th round of talks took place in March 2012.

New Zealand concluded a Closer Economic Partnership (CEP) agreement with Thailand that entered into force on July 1, 2005. In April 2008 New Zealand concluded a free trade agreement (FTA) with China. In October 2009, negotiations concluded on an FTA with the Gulf Cooperation Council (GCC--made up of Bahrain, Oman, Kuwait, Saudi Arabia, the U.A.E., and Qatar). The New Zealand/Hong Kong, China CEP was concluded in November 2009, and the agreement came into force in January 2011. In December 2007, New Zealand and South Korea announced the beginning of a study group to explore the benefits of a bilateral free trade agreement. The first round of FTA negotiations between New Zealand and South Korea took place in Seoul in June 2009. In June 2008, New Zealand and Japan established an economic working group to review their bilateral economic relationship. New Zealand and India agreed to undertake a joint study into the implications of an FTA in 2007. That study was completed in February 2009, and in January 2010 the two governments announced that negotiations would commence between their countries. Following a visit to India by Prime Minister Key in June 2011, both countries expressed a desire for an early conclusion to the deal. In August 2010 an FTA came into force between New Zealand and Malaysia. New Zealand, Russia, 8

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Belarus, and Kazakhstan began talks on an FTA in February 2011, with a second round in April 2011; they aimed to complete negotiations by the end of the year, although this did not occur.

New Zealand's top six trading partners (total trade) as of December 2011 included Australia, the People's Republic of China, the United States, Japan, the United Kingdom, and the Republic of Korea. In 2011, Australia was New Zealand's principal export market, totaling U.S. $8.94 billion, and making up 23% of New Zealand's total exports. China continued its rapid growth as New Zealands second-largest export market at 12.5% of total exports, up 22% from 2010 with a total of U.S. $4.87 billion. Despite having slipped to third place in 2010, the United States gained on previous years in 2011 with a 6.4% increase, totaling U.S. $3.31 billion, and making up 8.4% of New Zealand's total exports. As New Zealand's fourth-largest export destination, export trade with Japan was valued at U.S. $2.5 billion. China became New Zealands largest source of imports in the year ended December 2011, with a value of U.S. $6.2 billion, or 16% of total imports. Australia slipped from first place as the largest source of merchandise imports in 2011, dropping 4.1% to U.S. $6.1 billion, accounting for 15.8% of total imports. The United States is the third-largest trading partner for New Zealand, with U.S. goods and services accounting for 10.2% of all imports, totaling U.S. $3.9 billion.

The New Zealand dollar reached a 24-year high of over U.S. $0.88 in August 2011 (the highest since the New Zealand dollar was floated), and has remained high for some months, which has seen added pressure on New Zealand exports. The market-led economy offers many benefits for U.S. exporters and investors. Investment

opportunities exist in chemicals, food preparation, finance, tourism, and forest products, as well as in franchising. The best sales and investment prospects are for whole aircraft and aircraft parts, medical or veterinary instruments, motor vehicles, information technology, hotel and

restaurant equipment, telecommunications, tourism, franchising, food processing and packaging, and medical equipment. On the agricultural side, the best prospects are for fresh fruit, snack foods, and soybean meal. 9

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New Zealand screens foreign investment that falls within certain criteria. Under the auspices of the Overseas Investment Act 2005, New Zealands Overseas Investment Office (OIO) screens foreign

investments that would result in the acquisition of 25% or more ownership of, or a controlling interest in, significant business assets (significant business assets are defined as assets valued at more than NZ $100 million). Government approval also is required for purchases of land larger than 5 hectares (12.35 acres) and land in certain sensitive or protected areas, or fishing quotas. If the land or fishing quota to be purchased is owned by a company or other entity, approval will be required if the investor will be acquiring a 25% or more equity or controlling interest. Following a ministerial directive in December 2010, future bids to purchase sensitive or protected areas will come under even greater scrutiny to ensure that any investment is of economic benefit to New Zealand. Full remittance of profits and capital is permitted through normal banking channels.

A number of U.S. companies have subsidiary branches in New Zealand. Many operate through local agents, and some are in association in joint ventures. The American Chamber of Commerce is active in New Zealand, with its main office in Auckland.

4.2 Legal

The New Zealand legal system is derived from the English one and comes from two main sources: The common law, which is a body of law built up from decisions made in the United Kingdom and in New Zealand. Developments made by New Zealand courts mean that New Zealand now differs from the United Kingdom on some aspects of the common law.

Statute law, which is all the law made by Parliament. An integral feature of our system is the separation of power among three different branches of government. The division of power seeks to ensure that no one branch can act unconstitutionally. Although each branch has a different role, the separation is not absolute. 10

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The Legislature New Zealand's Parliament has developed from the British parliamentary system known as the Westminster system of government and is the highest law-making body in New Zealand.

Parliament has two parts:

1. The Head of State of New Zealand (Queen Elizabeth II) who is represented by the Governor-General. The Governor-General is appointed by the Sovereign on the Prime Minister's recommendation for a term of five years. The Governor-General exercises the Queen's royal powers (prerogative powers) which are found in the Letters Patent 1983. The GovernorGeneral's main constitutional function is to invite the Leader of the majority party to form a government. The Governor-General is also able to make regulations and his or her assent is required for all Bills passed by the House of Representatives before they can become law. He or she also holds the figurehead position of Commander-in-Chief of the armed forces. The Governor-General is required by constitutional convention to follow the advice of ministers. This means the Governor-General does what the Government advises him or her to do. Although there could be situations where the Governor-General could be required to exercise independent judgement, this has not happened for a long time.

2. The House of Representatives The New Zealand Parliament has one chamber, called the House of Representatives. The second chamber, known as the Legislative Council, was abolished in 1951. One hundred and twenty Members of Parliament (MPs) are elected to the House of Representatives for a three year term. They meet in the Parliamentary Buildings in Wellington. New Zealanders aged 18 years and over, elect the Members of Parliament by voting in elections. This is how New Zealanders have a say in who runs the country. The House's responsibilities are to debate and pass legislation, provide a Government, supervise the Government's administration by requiring 11

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it to explain policies and actions, supply money, and represent the views of the people of New Zealand. It has a number of Select Committees which examine proposed legislation (Bills) in detail, often hearing submissions from interested members of the public.

The Executive The Executive is made up of the Prime Minister, Cabinet and the public sector. The Executive conducts the Government, deciding on policy and administering legislation. All important Government policy decisions and legislative proposals either come from or are agreed to by Cabinet. Cabinet also co-ordinates the work of Ministers. Cabinet consists of Ministers who are members of the governing party or parties in Parliament and is presided over by the Prime Minister. Usually each Cabinet Minister is responsible for one or more government departments, but there can be Ministers "without portfolio", who do not have permanent responsibility for any department. Cabinet, like Parliament, has committees that examine specific subjects in detail. Cabinet Ministers are advised by public servants. Although it has great power, Cabinet is not a body established by statute. Its power comes from long-recognised convention. In contrast, the Executive Council, which is formally constituted, does not have the power to make policy decisions. It gives legal effect to decisions made elsewhere, eg regulations, Orders and Notices. The Executive Council is presided over by the Governor-General and in practice the other members are the Cabinet of the day.

The Judiciary The independence of the judiciary is an important principle of the New Zealand constitution, so freedom from political interference is an essential feature of the judiciary's position. This reflected in the standing orders of the House of Representatives (their rules) which prohibit members from criticising a judge. A judgement may be criticised but personal attacks on or attempts to influence a judge are not allowed, and could put the people concerned in contempt of court. If an MP does not like the decision reached in a

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case, the proper course is to introduce a Bill to change the law in question. It is the Judges' role to apply the law to every case that comes before the Court. Judges, however, also develop the law by deciding what legislation passed by Parliament means by interpreting it. A growing area of the Judiciary's work is judicial review, examining the acts of government and private administrative bodies to see whether they acted fairly and within their powers. Judges are appointed by the Governor-General. All judges are lawyers with at least seven years experience.

New Zealand's Constitution A constitution is central to a country's legal system because it defines the principles on which the system is based. It sets up the most important institutions of government, states their principal powers and makes broad rules about how those powers can be used. In some countries the constitution is written down in one place and that document is called the constitution.

New Zealand's constitution, which is the foundation of our legal system, is drawn from a number of important statutes, judicial decisions, and customary rules known as constitutional conventions. New Zealand does not have a single written constitution. New Zealand's constitutional arrangements can be found in a number of key documents. These, together with New Zealand's constitutional

conventions, form the nation's constitution. Key written sources include the Constitution Act 1986, the New Zealand Bill Of Rights Act 1990, the Electoral Act 1993, the Treaty of Waitangi and the Standing Orders of the House of Representatives. Aspects of the constitution are also found in United Kingdom and other New Zealand legislation, judgments of the courts, and broad constitutional principles and conventions.

Constitutional Conventions Constitutional conventions are rules that have become established by frequent use and custom. Conventions are an important part of the relationships between and within the legislature and the executive. Although some conventions have been put into statutes, most of them 13

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are not enforceable laws. Their continued existence depends on people respecting and obeying them. An example of a constitutional convention is that the Governor-General acts on the advice of his or her ministers.

The Rule of Law The rule of law also forms a significant part of the New Zealand constitution. The principles of the rule of law are not easily defined, but encompass ideas such as: The powers exercised by parliamentarians and officials are based on legal authority; there are minimum standards of justice to which the law must conform, eg laws affecting individual liberty should be reasonably certain and clear; the law should have safeguards against the abuse of wide discretionary powers; unfair discrimination should not be allowed by the law; a person should not be deprived of his or her liberty, status or other substantial interest without the opportunity of a fair hearing before an impartial court or tribunal.

The Treaty of Waitangi

The Treaty of Waitangi was signed in 1840, as an agreement between the British Crown and a large number of the Maori of New Zealand. Today the Treaty is widely accepted to be a constitutional document, which establishes and guides relationships between the Crown in New Zealand (as embodied by our government) and Maori. The Treaty of Waitangi had at its heart a promise to protect a living Maori culture; to enable Maori to continue to live in New Zealand as Maori, while at the same time conferring on the Crown the right to govern in the interests of all New Zealanders. This means that the Treaty relationships between the Government and Maori are ongoing and dynamic. The status of the Treaty in New Zealand law is, however, less than settled. The orthodox view is that where legislation makes no reference to the Treaty, then Treaty rights are unenforceable. Where the Treaty is referred to expressly in statute, the current approach of the courts has been to give effect to the reference. There are a number of statutes which contain references of this type. There is also evolving jurisprudence to suggest that where relevant, Treaty principles could guide the actions of executive government and 14

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permeate domestic statutes without express incorporation. In addition, New Zealand is to some degree under an international obligation to maintain some of the rights ascribed to the Treaty, as Parliament has incorporated into domestic law the International Covenant on Civil and Political Rights which upholds the individual and group rights of minorities. Article III Treaty of Waitangi rights (the right to equality before the law) are largely protected under the New Zealand Bill of Rights Act and Human Rights Act. Although there are limits on the extent to which Treaty rights can be argued in the courts system, as indicated above, the Waitangi Tribunal provides a forum for the hearing of historical and contemporary grievances regarding breaches of the Treaty of Waitangi. Under the Treaty of Waitangi Act 1975, any Maori may take a claim to the Tribunal that he or she (or the group to which he or she belongs) has been prejudicially affected by any legislation, policy or practice of the Crown since 1840. The Tribunal has the power to make recommendations to the Government. These recommendations are non-binding except in relation to particular assets, including forestry assets and other assets, owned or formerly owned by State Owned Enterprises and certain other state institutions. The main means through which claims concerning historical breaches of the Treaty are settled is by direct negotiation with the Crown (through the Office of Treaty Settlements). This often occurs after the Waitangi Tribunal has issued a report on the grievance.

The Electoral System The 1996 general election was the first held in New Zealand under the mixed member proportional system (MMP). Under the MMP system voters have two votes; a party vote and an electorate vote. Voters can choose what party they want in Parliament with their party vote and which person they want to represent their electorate with their electorate vote. New Zealand is divided geographically into 61 general electorates and 6 Maori ones. There are also 53 seats for list MPs. The number of general electorates changes as the population changes. All voters live in an electoral area and vote in that same area. People of Maori descent can choose whether to be on the Maori or general electoral 15

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rolls. The Maori seats can change as the number of Maori voters on the Maori roll changes. The Electoral Act 1993, which sets out the way the New Zealand electoral system works, is the only statute in New Zealand with entrenched provisions. Being "entrenched" means that if certain changes to the Electoral Act are to be made, for example the length of the Parliamentary term, they must be passed by either:

75 percent of MPs; or a majority vote in a referendum of all voters on the electoral rolls. Usually a simple majority (51 percent) of MPs is all that is required to make changes to an Act. The New Zealand Bill of Rights Act 1990 The New Zealand Bill of Rights Act 1990 safeguards the civil and political rights of New Zealanders. The Act protects the following categories of rights and freedoms: life and security of the person; democratic and civil rights; nondiscrimination and minority rights; search, arrest and detention; criminal procedure; and right to justice. The Act is not higher law and does not "override" other laws, but it does nevertheless provide protection for the rights in it. The Courts must interpret other laws consistently with the Bill of Rights Act if at all possible. Further, all bills are assessed for consistency with the Bill of Rights Act before they are introduced into Parliament. Where there is an inconsistency in a bill, the Attorney-General must inform Parliament. While this does not prevent Parliament passing inconsistent laws, it does ensure that any issues are fully debated.

The Human Rights Act 1993 The Human Rights Act 1993 is aimed at giving all people equal opportunities and preventing unfair treatment on the basis of irrelevant personal characteristics. The Human Rights Act covers discrimination on the grounds of sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status, and sexual orientation. It is unlawful to discriminate on these grounds in the following areas of public life: employment, education, access to public places, provision of goods and 16

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services, and housing and accommodation. People who think they have been discriminated against may complain to the Human Rights Commission.

GENERAL LEGAL SYSTEM INFORMATION Civil and Criminal Law There are two main divisions of law - civil law and criminal law. Civil law covers disputes between individuals, companies and sometimes local or central government, and usually doesn't involve of the police. The disputes usually involve money, with a wide range of cases coming before the courts -disputes over business contracts, wills, tax, land or other property; cases where negligence has caused another's loss; and family matters such as custody of children and division of matrimonial property. Many civil cases are settled without a court hearing being needed -all parties agree on a solution, usually after negotiations by the parties' lawyers. In a civil case, the plaintiff (the person who brings the action or "sues") must prove their case to the balance of probabilities -it must be more likely than not that the plaintiff's version of events is correct. Criminal law has a high profile as it usually involves the police investigating crimes eg theft, murder, and trials which are often reported by the news media. The accused has the right to be represented by a lawyer and to have the evidence against him or her heard in an open court (open to the public) and tested by cross-examination. The offence must be proved beyond reasonable doubt. If convicted of a crime, a person will be sentenced in accordance with the law, and has a right to appeal against conviction and sentence. Criminal prosecutions are usually brought by the police but are also brought by others, for example, the Ministry of Transport, Department of Inland Revenue and Local Authorities.

Court Proceedings In the District Court and High Court the Judge sits alone or with a jury. A jury is made of 12 ordinary people selected at random from the jury roll (which is based on the electoral roll), and its role is to decide questions of fact. Various laws say when there has to be a jury, and

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when there is a choice to have one or not. Questions of law are decided by the Judge, who also directs the jury on the law where necessary. In New Zealand courts the adversary system is usually used to determine issues. In this system, the Judge generally plays the role of a neutral referee while each party presents evidence and arguments (on the facts and on the law) in support of its own case. Rules of evidence determine what can and cannot be presented to the court. These rules are aimed at ensuring a fair trial of hearing for each party. The verdict (decision on the case) is given after all evidence and arguments have been presented. Where a person is tried without a jury, the verdict is given by the Judge. An inquisitorial system similar to that used, for example, in France is used to a certain extent in administrative tribunals and commissions of inquiry. In this system the judge or person in charge takes a more active role, asking questions and in general the proceedings take the form of an investigation rather than a trial.

Legal Profession In the New Zealand legal profession most lawyers are both barristers and solicitors. This means they are able to appear in court and deal directly with the public. A small number are barristers only ("barristers sole") who have chosen to specialise in arguing cases in court. Barristers in general do not deal directly with members of the public, and instead clients are referred to them by solicitors.

Legal Aid A government funded Legal Aid scheme enables those who cannot afford legal representation to be represented by lawyers in both civil and criminal cases.2

4.3 Political The traditionally conservative National Party and left-leaning Labour Party have dominated New Zealand political life since a Labour government came to power in 1935. During its first 14 years in office, the Labour Party implemented a broad array of social and economic

http://www.justice.govt.nz/publications/global-publications/t/the-new-zealand-legal-system

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legislation, including comprehensive social security, a large-scale public works program, a 40-hour workweek, a minimum basic wage, and compulsory unionism. The National Party won control of the government in 1949 and adopted many welfare measures instituted by the Labour Party. Except for two brief periods of Labour governments in 1957-60 and 1972-75, National held power until 1984. After regaining control in 1984, the Labour government instituted a series of radical market-oriented reforms in response to New Zealand's mounting external debt. It also enacted anti-nuclear legislation that effectively brought about New Zealand's suspension from the ANZUS security alliance with the United States and Australia.

In October 1990, the National Party again formed the government, for the first of three 3-year terms. In 1996, New Zealand inaugurated a mixed-member proportional (MMP) system to elect its parliament. The system was designed to increase representation of smaller parties in parliament and appears to have done so in the MMP elections to date. Since 1996, neither the National nor the Labour Party has had an absolute majority in parliament, and for all but one of those years, the government has been a minority one. The Labour Party won elections in November 1999 and again in July 2002. In 2002 Labour formed a coalition, minority government with the Progressive Coalition, a left-wing party holding two seats in parliament. The government relied on support from the centrist United Future Party to pass legislation.

Following a narrow victory in the September 2005 general elections, Labour formed a coalition with the one-seat Progressive Party. The government also entered into limited support agreements with the United Future New Zealand and NZ First Parties, whose leaders were respectively given the Revenue and Foreign Affairs ministerial positions outside of the cabinet. This gave Labour an effective one-seat majority with which to pass legislation in parliament. Labour also secured an assurance from the Green Party that it would abstain from a vote of confidence against the government. The 2005 elections saw the new Maori Party win four out of the seven reserved Maori seats. The additional seat in the 121-member parliament was the result of an overhang from 2005 elections. There were two independent members 19

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of parliament (MPs): a former Labour Party MP and a former United Future New Zealand MP, both of whom left their respective parties in 2007.

The 2008 general election on November 8 was comfortably won by the John Key-led National Party. National won 45% of the popular vote (58 seats) to Labour's 34% (43 seats). The Green Party won nine seats; ACT won five; the Maori Party picked up an additional Maori seat to bring its total number of seats to five; the Progressives and United Future won one seat each. New Zealand First, the party of former foreign minister Winston Peters, did not win enough votes to return to parliament. On November 16, 2008, Key announced the formation of a new National-led center-right government in coalition with the rightleaning ACT and the centrist United Future party. National also entered into a limited support agreement with the Maori Party.

The government was sworn in on November 19, 2008, with Key becoming New Zealand's 38th prime minister. During her election night concession speech, outgoing Prime Minister Helen Clark announced that she would step down as Labour's leader after 15 years in charge. She was succeeded as party leader by Phil Goff. The Key-led government's main focus has been on economic growth following a period of recession and recovery from the devastating Christchurch earthquake of February 2011. Key presided over a stable governing arrangement with his support parties and his ruling National Party.

The 2011 general election on November 26 resulted in the re-election of Keys National Party with 48% of the total vote and 60 parliamentary seats. The opposition Labour Party received 27.1% of the vote and won 34 seats. After the election Phil Goff stepped down as Labour leader and was replaced by David Shearer. The Green Party returned to parliament with 14 seats after it recorded its highest-ever vote of 11.1%. New Zealand First returned to parliament with 8 seats and 6.8% of the vote after having been voted out in 2008. The Maori Party won 5 seats, and ACT and United Future and the Mana Party one seat each.

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On December 5, 2011, National re-entered into agreements with ACT and United Future and with the Maori Party to form a minority government with a seven-seat majority (64 seats to 57). The governments priorities for this term are managing the governments finances, building a more productive and competitive economy, delivering better public services, and rebuilding Christchurch. The 50th New Zealand parliament was sworn in on December 20, 2011 with 121 members (120 seats plus one overhang seat).3 4.4 Cultural The culture of New Zealand is largely inherited from British and European custom, interwoven with Maori and Polynesian tradition. An isolated Pacific Island nation, New Zealand was comparatively recently settled by humans. Initially Mori only, then bicultural with colonial and rural values, now New Zealand is a cosmopolitan culture that reflects its changing demographics, is conscious of the natural environment, and is an educated, developed Western society. Mori culture has predominated for most of New Zealand's history of human habitation. Mori voyagers reached the islands of New Zealand some time before 1300, though exact dates are uncertain. Over the ensuing centuries of Mori expansion and settlement, Mori culture diverged from its Polynesian roots. Mori established separate tribes, built fortified villages (P), hunted and fished, traded commodities, developed agriculture, arts and weaponry, and kept a detailed oral history. Regular European contact began approximately 200 years ago, and British immigration proceeded rapidly during the nineteenth century. The colonists had a dramatic effect on the indigenous Maori, bringing religion, technology, and the English language. In 1840 Mori leaders signed the Treaty of Waitangi, intended to enable the tribes to live peacefully with the colonists. However after several incidents, the treaty was ignored and the New Zealand land wars broke out from 1845, with Mori suffering a loss of land and identity, while also
3

http://www.state.gov/r/pa/ei/bgn/35852.htm

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increasingly becoming a minority group over the following century. Despite such setbacks, Mori culture has regained much of its lost influence in recent decades. European New Zealanders (Pkeh), despite their location far from Europe, retained strong cultural ties to "Mother England." These ties were weakened by the demise of the British Empire and loss of special access to British meat and dairy markets. Pkeh began to forge a separate identity influenced by their pioneering history, a rural lifestyle and New Zealand's unique environment. Pkeh culture became prevalent after the land wars, but after sustained political efforts, biculturalism and the Treaty of Waitangi became part of the school curriculum in the late 20th century, to promote understanding between Mori and Pkeh. More recently, New Zealand culture has been broadened by globalization and immigration from the Pacific Islands, East Asia and South Asia. European and Mori remain the two largest ethnicities, but the large Polynesian population in Auckland has prompted the observation that Auckland is now the largest Polynesian city in the world. However, the country outside of Auckland is still much less heterogeneous, with big parts of the South Island remaining predominantly of European descent. New Zealand marks two national days of remembrance, Waitangi Day and ANZAC Day, and also celebrates holidays during or close to the anniversaries of the founding dates of each province. The national anthem, "God Defend New Zealand" is often sung with alternating Mori and English verses. Many citizens prefer to minimise ethnic divisions, simply calling themselves New Zealanders or Kiwis.

4.5 Social Is very egalitarian. All are seen in the same way and respected the same way, no matter the skin color, religion, social status, sexual orientation, or political ideologies. Whenever there is no discrimination and uphold the law, any visitor or new resident will be welcomed to the country, and will be well treated. The social system is based on the 22

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family, and improve the situation to study and work. What a person does or how much you earn, no matter in how to be treated or treat others. All are equal before the law, and have the same rights and obligations. In this country, humans are respected film speak to 100%.

5. Target market segmentation, positioning

6. Process of selection of markets

7. Strategies of international market entry I Exports can be sporadic, regular indirect or direct regular. Sporadic exports are related to those that have been made in certain situations, without intending to have a continuity in that market. Indirect regular exports: are a way to penetrate foreign markets without direct involvement in the complexities of export. This delegated financial risks to the distributor, so the producer is substantially free of obstacles and risks of negotiating sales. But the problem is to form a screen between customer and manufacturer and dealer's hands delegate pricing, choice of buyers, sales promotion and customer service.

Among the options that do not require direct investment, are. License: It consists of contractual arrangements through which companies transfer their intangible assets to other foreign companies in exchange for royalties or other payment. These licenses may constitute assignment of patent rights, licenses or manufacturing marks or transmission of know-how or expertise.

International franchising: a company standardizes a way to work or other use rights granted to a company or an independent person for a fee. When performing a franchise agreement, it has to play all the business granted by the company and the whole system of distribution, marketing, purchase of materials and production taxes and controlled by the original company. Franchises are differences in the license by the greater emphasis on control over the operations of the company that is granted. Normally these 23

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contracts are binding to mature, which upon reaching maturity must decide whether to extend or not. For this type of business, companies that grant franchises should provide continuous support to the franchisee.

Its advantage lies in enabling a rapid expansion in a foreign market with low capital investment, as well as to operate in a foreign market when there is familiarity with the laws and mechanisms of the market, however limited benefits the company that is granted. Production contract: This is an intermediate strategy between the license and investment as input mode. The advantages are that resides only a small commitment of financial resources and management. Represents a rapid entry to foreign markets, enabling the international company having control over the marketing and after sales services. It is ideal for markets too small to justify an investment as input and exports are blocked or simply too expensive. It has the disadvantages of the difficulty of finding a local producer at the desired height, the possible need for great technical assistance and risk of creating a future competitor. Management contract: Provide low risk of market entry, but are unsatisfactory because they allow the company to build a permanent position in the market for their products.

8. Strategies of international market entry II On the other hand, foreign direct investment refers to investment that makes a national company in a foreign country to produce in that country. Then we have 3 different types of this investment. New Investment: The national abroad creates a new plant which has the property of the same. This means that the company transferred management, technology, marketing, financing and other resources to another country by setting up another business under their own control. In this type of direct investment to reduce costs on exports as a mode of entry into areas such as transport, marketing and production costs. The production also could benefit if the target country had some sort of barrier to the importation of foreign products. 24

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The main advantages over production in direct investment abroad without lies the greatest opportunities to adapt the product to local tastes. But there are also disadvantages of a greater commitment of resources, more information about macro and micro factors and the high initial costs with the consequent difficulty of disinvestment in case of failure. Acquisition: It is done through the purchase of a company already created. Has potential advantages over the new investment, rapid exploitation of foreign market, since the company already has products on the market and customers in its portfolio, and possession of managers and staff who understand the market characteristics. The disadvantages could say that locate and evaluate potential candidates could be an extremely difficult task, as it can create problems with government policy not to allow willing local companies are held by foreign investors. Joint Ventures: They occur when an international company involved in the ownership of a company in a target country. These can be classified as majority, minority or fifty to fifty. Despite having less control than being the sole shareholder of the company, resulting in advantages of local partner contributions as local capital, knowledge of the environment, business practices in the country, personal contacts with consumers, banks and others. They are usually performed most commonly by small multinationals looking to share risk and information, also often occur in cases where the investment is planned to make a somewhat unknown country

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