Trends in fdi movement of New Zealand Economy over the Last Two Decades: An Analysis Ershad Ali

III. Conclusion and Recommendation 
 
Globalization had influenced a lot of economy of different countries in the past 20 years including New 
Zealand. Although New Zealand it is a small country, its economy was able to manage the changes that have 
occurred and was able to maintain a competitive economy by the help of their Foreign Direct Investment and its 
inflow and outflow. The main product of New Zealand lies on their agricultural system which they had been 
developing since the European settlement in the country. It is also important to note that New Zealand had found 
a way to gain income from Asian countries by encouraging tourism, exporting of services and offering education. 
The focus of the country is to have a good relationship with countries such as U.S and Australia.
The trend in New Zealand economy is that it is a country that has an impressive economy because of their 
investors. The current investors of New Zealand include Canada, Singapore, and China. This investor has been 
consistent with the country’s interest since the implementation of Overseas Investment Office. The growth of 
overseas investor had made New Zealand develop and change the policy on purchasing house and other properties.
Finally, although New Zealand has a good economy, they are still facing some challenges that is related to foreign 
investment. These challenges include lack of domestic savings in case of economic crisis, the fear of being 
monopolized by international establishment, huge discrimination on foreign investors and lack of fund to cover 
some of the government projects.
The experience of New Zealand through the years had greatly illustrated that their economy has the ability to 
overcome the changes brought by globalization. Although this is a fact, they still need to continuously make a 
way to change certain areas that may have impact on the economy positively. New Zealand should continue to 
promote immigration of people since this had been a good source of human and financial resources for the nation. 
In addition, the nation should find certain system that may also be beneficial to these immigrants so that they feel 
appreciated and not discriminated.

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Journal of International Business, Economics and Entrepreneurship 
ISSN :2550-1429 Volume 4, (1) June 2019
 
In area of property acquisitions, they must provide a policy that could let overseas investors acquire property 
that will not affect their citizens. For example, if a country wanted to acquire property in New Zealand to establish 
a firm, the government must have the understanding that the firm might be able to provide products that their 
country does not have comparative advantage.
Lastly, New Zealand must be able to retain and improve the export of their agricultural products to be known 
all over the world and to be recognized as the best source of products needed in this area. In this way, it will help 
the economy to increase employment and the GDP at the same time.