Describe three challenges to New Zealand's economic success. What issues might New Zealand face as a smaller island nation?

2 answers:

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1. It is located away from most of the developed countries. With the exception of Australia, most of its neighboring countries are still developing.

2. It is surrounded by waters which create barriers for trade.

3. There is a change in demographics since there are a lot of people moving to the country.

steposvetlana [31]2 years ago

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Answer:

New Zealand has a small population. As a result, the country may attract less international investment interest. New Zealand’s economy struggles to diversify, as certain products such as wool are dominant in the economy. New Zealand also has suffered the loss of a major exclusive trading partner in the United Kingdom. Since joining the European Union, the UK no longer can provide discounts to non-EU partners. The number of New Zealand goods sold in Britain fell as a result. To combat this, New Zealand is now diversifying exports and is trading more with Japan, the United States, and Australia.

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I can help you with that.

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