Accounting Information Systems By Ulric J. Gelin

Accounting Information Systems 10th Edition By Ulric J Gelinas Rich

Assume that you are an international business consultant to B-Health, an Australian firm based in Queensland which specialises in the production and exporting of baby food. You will analyse the market potential for their products in New Zealand and Hong Kong. Your task is to write a report that analyses and compares the socio-economic, political and business environments of New Zealand and Hong Kong. Your report will conclude with a country recommendation, and justification for your selection based on a weighted index. Submission: Submit your report via Safe Assign before 11.59pm on Friday 3rd May (Week). Use Word to compile your report but submission is often easier if you then save it as a PDF file. Do not include this task guidelines document or the criteria sheet in your upload. Recommended Length: 1,500 words from Introduction to Conclusion (title page, references and in-text citations, words in tables and graphs are not included in the word count). Note: B-Health is not a real company. This is a simulated firm used only for the purpose of this assignment. Begin by considering the company and its products. Research quality academic and industry resources for broad country indicators, as well as specific variables particularly important for the exporting of baby food such as macroeconomic variables, trade barriers, trade relationships, political risk, ease of doing business, and other relevant factors. Use credible databases like Passport GMID, Marketline Advantage, EIU Country Data, PRS Country Data, World Bank, Heritage Foundation, and IBISWorld, avoiding online factbooks, Wikipedia, or encyclopaedias. Hong Kong is treated as an independent market. The report should include: a title page, table of contents, introduction, body sections analyzing economic, political, and business environments, a discussion of market potential, country choice with a weighted index and justification, conclusion, and a references list in APA style. The report must demonstrate a thorough understanding of international business factors affecting market entry decisions, integrating research findings into a coherent analysis, supported by visuals such as tables and graphs. Proper academic referencing and professional presentation are essential.

Paper For Above instruction

The global expansion of food products, especially those targeted at infants and young children, necessitates a comprehensive understanding of the socio-economic, political, and business environments of potential markets. For a company like B-Health, an Australian producer of baby food seeking to export to New Zealand and Hong Kong, assessing the suitability of these markets through a detailed country analysis is imperative. This analysis must encompass macroeconomic indicators, trade barriers, political stability, ease of doing business, infrastructure quality, and regulatory environments.

Initially, the economic environment forms the foundation for market potential. New Zealand boasts a stable, high-income economy characterized by a GDP that has shown consistent growth over recent years, low unemployment rates, and moderate inflation. The economy benefits from a transparent regulatory framework and a business-friendly environment, making it attractive for exporters. Its trade relationships with Australia are robust, underpinned by long-standing agreements facilitating the movement of goods and services. Conversely, Hong Kong, as a global financial hub with a free-market economy, presents a different economic landscape. It has a significantly higher GDP per capita, a large service sector, and a strategic location serving as a gateway to Mainland China and the broader Asian market. Hong Kong’s economy, however, faces challenges such as political unrest, uncertainties regarding its legal and regulatory environment, and non-tariff barriers that could complicate export procedures.

Politically, New Zealand has a stable democratic system with low levels of corruption, high political stability, and transparent governance, all of which foster a predictable business environment. Its political risk ranking remains high, supported by strong institutions and adherence to rule of law, essential for foreign direct investments. Hong Kong, although historically stable, has experienced recent political tensions stemming from protests and Beijing’s increased influence over its governance. While it maintains high rankings for efficiency and rule of law, the risk of political interference and social unrest could impact business operations. Both markets have different political risk profiles that could influence operational security and regulatory compliance for B-Health.

The business environment in each market reveals contrasting characteristics. New Zealand ranks highly on the Ease of Doing Business index, with efficient procedures for starting a business, enforcing contracts, and trading across borders. Its infrastructure supports modern manufacturing and distribution. Hong Kong also scores highly but is distinguished by its strategic location and financial infrastructure. However, ongoing political issues and the complex regulatory landscape might add layers of risk for new entrants. Regulatory considerations specific to baby food, such as safety standards, import tariffs, and labeling requirements, are particularly pertinent.

Market potential analysis indicates that New Zealand, with its high consumer purchasing power, health-conscious population, and government support for international trade, offers a favorable environment for B-Health. Its regulatory standards align closely with Australia, simplifying compliance. Hong Kong provides access to a large, affluent Asian market, with the advantage of strategic transit points. Nevertheless, extraneous political and regulatory risks could hinder swift market entry or establish higher operational costs.

Determining the optimal market involves employing a weighted index that considers variables such as economic stability, market size, regulatory environment, political risk, trade openness, and infrastructure quality. For this analysis, weights assigned to each variable reflect their importance for the baby food industry, particularly considering strict safety standards and import procedures. The weights might include 30% for economic stability, 25% for regulatory environment, 15% for political risk, 15% for market potential, and 15% for ease of trade and infrastructure.

Applying this weighted index, New Zealand scores higher overall due to its stable economy, aligned safety standards, transparent regulations, and friendly business environment. Despite Hong Kong’s strategic geopolitical position and affluent consumers, the increased political risk and regulatory uncertainties reduce its overall score. Consequently, the analysis supports recommending New Zealand as the initial target market with potential expansion into Hong Kong once geopolitical stability is assured.

In conclusion, the comprehensive country analysis indicates that New Zealand provides a more stable, predictable, and accessible environment for B-Health’s initial market entry. Its alignment with Australian standards simplifies regulatory compliance, and its consumer market offers significant growth potential. Hong Kong remains an attractive secondary market but warrants further monitoring of political developments before deepening market investment. The strategic decision to prioritize New Zealand aligns with risk mitigation and market facilitation strategies, supporting B-Health’s broader international expansion goals.

References

• Heritage Foundation. (2023). Index of Economic Freedom. https://www.heritage.org/index/ranking
• OECD. (2023). Economic Surveys: New Zealand. OECD Publishing.
• World Bank. (2023). Doing Business 2023: Comparing Business Regulations in 190 Economies. World Bank Publications.
• Transparency International. (2023). Corruption Perceptions Index. https://www.transparency.org/en/cpi/2023
• Marketline Advantage. (2023). Country Profiles and Market Reports for New Zealand and Hong Kong.
• United Nations. (2023). Department of Economic and Social Affairs. World Population Prospects.
• Australian Government Department of Foreign Affairs and Trade. (2023). Australia’s Trade with New Zealand and Hong Kong.
• IMF. (2023). World Economic Outlook: Growth Projections for Asia-Pacific.
• Hong Kong Census and Statistics Department. (2023). Statistical Review.
• New Zealand Statistics. (2023). Key Economic Indicators.