The Economy of New Zealand: Primary Industry, Manufacturing, and Service Industry
Every society, whether it is a city, state, province, or nation, revolves around an economy. In the same way that governments may be quite divergent from each other, economies vary from one society to the next. Economy is thus an optimal avenue for the study of any nation. The synopsis of a national economy will reveal a widespread set of facts and characteristics unique to that nation; the economy of New Zealand, for instance, recently transitioned into an Industrial Economy, concentrating on primary industries, manufacturing, and service industries (Central Intelligence Agency, 2014).
The History of New Zealand Economics
New Zealand is universally celebrated for its picturesque landscape and agricultural competency. A common misunderstanding, the view that New Zealand’s economy remains a predominantly sheep and wool based in its productions, is often held by those who know little about the nation. At a point in time, this presumption concerning the economy was once reasonably accurate. Nevertheless, it is now an outdated and erroneous description in regards to New Zealand’s evolving economic status (Easton, 2013).
From Agrarian to Industrial
Before developing an independent industrial economy, New Zealand maintained an agrarian economy that depended largely on Great Britain. Many of the occupations and productions prevalent under New Zealand’s agrarian economy remain central to New Zealand’s current economy. However, the shift in the nation’s economic focus has made a major impact on the extent to which these productions or services occur and shifted the roles of different industries (Central Intelligence Agency, 2014). With primary industries emp...
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...is not nearly as economically prominent as the dairy industry. Nevertheless, it does account for almost exactly the same overall annual revenue as New Zealand’s cattle industry does. Like the cattle industry, sheep productions have both risen and fallen over the course of the past several years. In fact, the cattle and sheep meat industries have competed against each other for the position of third largest agricultural sector. In the year 2011, statistics revealed that sheep meat produced eighty-one million dollars less than the cattle industry that year (New Zealand Government, 2012).
The Fruit Industry
As number five on the 2011 list of top agriculture sectors in New Zealand, the fruit industry is almost as large as the two preceding sectors- cattle and sheep meat. Resembling the rates of the previous sectors, fruit production rates have varied from year to year.
The Great Depression was a devastating event that brought misfortune to many people as a result of the stock market crash on Black Tuesday. This paper will seek to explore the impact and effects on the agriculture industry throughout the province of Prince Edward Island, herein referred to as P.E.I. Furthermore; it will analyze critical events and ask questions as to how people during this era reacted to the change in economic uncertainty.
The 1920’s were the singularly most influential years of farming in our country. The loss of farms following the war, and new agricultural practices resulted in the dawn of modern agriculture in our country. The shift from small family to big corporation during this time is now the basis for how our society deals with food today. Traditional farming in the 1920’s underwent a series of massive transitions following WWI as the number of farms decreased and the size of farms increased.
“We take care of animals, and the animals take care of us.” (Rollin 212). The preceding phrase is a policy that American farmers in the old west lived their lives by. Modern farmers live do not live their lives anywhere near to this phrase because they own factory farms, and the whole reason for having a factory farm is to fit as many animals in a small space as possible in order to maximize profit. Factory Farms, or Concentrated Animal Feeding Operations (CAFO) first appeared in the 1920s, right after Vitamins A and D, because if animals are given these vitamins in their diets, exercise and sunlight are not necessities for the animals to grow anymore (In Defense of Animals 1). The growing number of factory farms is coupled with the decreasing population of rural areas, which means that many people are beginning to factory farm because it yields a higher profit (“Agricultural Sciences” 170). In the 1950s, the average number of chickens on a given egg farm in the United States was 100, but now the average number is a shocking 10,000 chickens (“Factory Farms” 4). The reason for the increase of chickens has to do with new and cheaper technology developed just after World War II. The new technology increased the number of chickens, while it had the opposite effect on dairy and meat cows, their numbers went in the other direction. The number of cows used for milk was cut by more than half between 1950 and 2000, because farmers discovered new and more efficient methods for milking cows (Weeks 4). Many activists for animals’ rights are concerned about the methods used by factory farmers because they confine their animals into tight spaces and since there are so many of them in a small ...
History provides the opportunity to explore the origins of a topic or problem. The information from Agriculture and rural society after the Black Death provides an overview of agricultural and rural society’s agrarian issues; during the Middle-Ages these issues were centered around depopulation and social conflict (Dodds & Britnell, 2008, pp.3-50). Problems in the economics of society in the medieval fourteenth century involved the decline of social status and labor services (Dodds & Britnell, 2008, pp.73-132). Other examples are seen in change and growth describe of that in 1870, the Great Plains only had 127,000 people; six decades later in 1930, there were 6.8 million people; 74 percent of the population lived in non-metropolitan areas; from 1930 to 1940, there was a loss of 200,000 people; 75 percent of these counties lost populations from the Great Depression and severe drought, which had caused the abandonment of farms (Kandel & Brown, 2006, p.431). To understand these past experiences, the door to hindering issues must be opened to determine how agricultural sustainability forges change.
Agriculture is of major importance to the economy of Canada as it represents 1.5% of gross domestic product (GDP). “Agriculture is an industry that, in the absence of government farm programs, is a real-world example of the perfect-competition model” (McConnell, Brue and Flynn, 2012).
The company our group chose to expand upon was Winnebago. Winnebago is a motor home manufacturing company. It was founded in 1958, in Forrest City Iowa by John K. Hanson. Our proposed expansion method is to open up two Winnebago franchises in New Zealand, particularly in Auckland and Christchurch. This would be beneficial for our company due to the fact that it covers two major cities in the North and South Islands of New Zealand. As stated on Newzealandnow.govt.nz (2016), “New Zealand has an open market that works on free market principles,” (“Economic Overview”, 2016).
Agriculture was the most important economic activity in America from the founding of Virginia in 1607 to about 1890. Although farming declined rapidly in relative economic importance in the twentieth century, U.S. agriculture continued to be the most efficient and productive in the world. Its success rested on abundant fertile soil, a moderate climate, the ease of private land ownership, growing markets for farm produce at home and abroad, and the application of science and technology to farm operations.
Together, the improvements in agriculture, transportation, and communication changed the ways of economic, social, and political life. By the 1850s, farming had become a leading commercial activity. The standard of living for many farm families also improved. ?Undeveloped land dotted with scattered farms, primitive roads, and modest local markets was transformed into an engine of capitalist expansion, audacious investment, and global reach.? (Tindall, 432)
Individuals who live on the island don’t see the need to have local farmers when the produce has already been provided by imports. According to The American news article, the state currently imports 92% of its produce, dairy and livestock. That being said, all but 8% of foods consumed are imported across miles
Many people fail to realise the importance of our economy, how diverse and interactive it is to our daily lives and the distinct role it plays in our constantly evolving economic climate. My initial interest stemmed from my lack of knowledge about the UK economy; resulting in the research about our recent financial crisis and from there it grew tenfold. I began to observe the situations around me from a different perspective, and with the help of micro and macroeconomic objectives, which are the fundamental foundations; I have been able to pursue this social science in far greater depth and understanding. It is a growing ambition of mine to explore what effect daily transactions and the conduct of millions of people like me has on our future in a domestic and global aspect. Further developing my study of economics will ensure I am able to explore such views to a higher level.
Cheyne, C., O’Brien, M., Belgrave, M. (2008). Social Policy: In Aotearoa New Zealand (4th ed). Australia and New Zealand: Oxford University Press
Leading up to the end of the 1800’s, agricultural was losing its place as the largest economy in the United States. Farmers felt that they were under-appreciated and taken advantage of, even though they produced food to be distributed nationwide. Although agriculture was imperative to the survival of the nation, farmers faced devastating natural causes, outrageously high rates on land and transportation, and unsuccessful tries in politics.
Kiwifruit industry in New Zealand. (2014, March 30). Wikipedia. Retrieved March 31, 2014, from http://en.wikipedia.org/wiki/Kiwifruit_industry_in_New_Zealand
Agriculture has changed dramatically, especially since the end of World War II. Food and fibre productivity rose due to new technologies, mechanization, increased chemical use, specialization and government policies that favoured maximizing production. These changes allowed fewer farmers with reduced labour demands to produce the majority of the food and fibre.
Have you ever wondered how a nation’s wealth is measured? How do economists, politicians, and governments know if their economies are improving or decreasing? One method macroeconomists use to measure a countries economy is called measuring the Gross Domestic Product (GDP). According to Mankiw 2015, a GDP is the “market value of all final goods and services produced within a country in a given time period” (p. 198). What are the components of GDP and how GDP is measured will be the discussion of this essay.