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Firms' Decisions on the Location of Economic Activity - A Survey

Released November 2007
Page Updated 13 Nov 2009

Release of a study commissioned by the Treasury from Firecone and Zusammen and of related Treasury advice to the Minister of Finance on the main themes and policy implications of the study.

The Treasury commissioned this research from Firecone and Zusammen Ltd to find out what might be behind New Zealand company decisions to shift aspects of their business offshore. We wanted to know more about characteristics of the New Zealand economy most important to ensure that New Zealand remained a competitive place to locate high value-added business activity.

As only 15 firms were interviewed, it is difficult to draw concrete policy conclusions from the study. However, the study highlighted a number of factors that influence firms’ decisions about where to locate their business activity, including:

  • history/inertia
  • lifestyle/national pride
  • access to key people and skill sets
  • access to capital
  • cost savings/quality benefits
  • management of critical relationships
  • proximity to consumers
  • proximity to other components of the value chain
  • quality of business environment.

Documents are available in Adobe PDF format only. HTML versions can be supplied on request by Information Services at the Treasury.
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Officer for Enquiries

Please direct all queries regarding this study to the Treasury.

Serene Ambler | Senior Communications Advisor
Tel: +64 4 917 6163

[1] Note - The correct biographical details of the study’s authors are below, they were not correct in these Treasury Reports. Please direct all queries about the study to Phil Barclay (details above).

Firecone Limited is an economics, finance, and business consultancy, based in Melbourne and Wellington. Its clients include prominent companies, regulatory authorities, and government agencies on both sides of the Tasman. The consultant for this project was Mr. Andrew Sweet, the Director of the Wellington office.

Zusammen Investments Limited is a business and economics consultancy. Mr Murray Nash is the Principal. Mr Nash is a New Zealand national. He has considerable business, finance, and risk management experience. In 2005 he was appointed Chief Executive of Hawke's Bay Inc. which is the regional body for economic development in Hawke's Bay. He previously held senior positions in leading risk management companies in the USA.
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