← Applying business knowledge to a complex global problem
The "global business context": trade, tariffs, and adapting products
Every scenario on this paper is a New Zealand business trading internationally — the same handful of global-trade mechanisms recur as either the cause of a problem or the criterion behind a decision.Global-trade mechanisms worth knowing cold
- Tariffs: a tax on imported goods, raising their landed cost — a free trade agreement removes or reduces these, making exports more price-competitive.
- Non-tariff barriers: quotas, standards, or customs delays that restrict trade without a direct tax — an FTA can ease these too, not just tariffs.
- Exchange rate movements: a weaker NZ dollar makes NZ exports cheaper overseas (and imports more expensive); a stronger dollar does the reverse.
- Cultural/market adaptation: a product designed for the NZ or Australian market may not suit another market's climate, housing size, tastes, or income level, forcing a redesign.
- Supply chain distance and disruption: longer shipping distances and routes mean more exposure to delay, and fewer alternative suppliers if one link fails.
Naming a global-trade mechanism without its specific direction and figure
Saying "trade barriers affect the business" is a Stated-level answer. Naming the SPECIFIC mechanism (a tariff reduction under a named FTA, an exchange rate movement, a shipping-distance figure from the resources) and its direction of effect is what reaches Explained and beyond.A fast check for a global-context part
- Have I named the specific mechanism (tariff, exchange rate, cultural fit), not just "global factors"?
- Have I stated the DIRECTION of the effect (cheaper, more expensive, more/less competitive)?