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COUNTRY ANALYSIS REPORT
OF
NEW ZEALAND
Prepared by:
Prepared for:
Rossignol Corporation
May 24, 2006
Introduction
Rossignol Company is a fully owned subsidiary of Quicksilver Corporation. (NYSE: ZQK) which produces snow sport equipment, apparel, and accessories. Currently Quicksilver is investigating additional manufacturing facilities in Asia to quickly capitalize on its newly entered market with the acquisition of Rossignol ski division. During the fiscal year of 2005, Rossignol manufactured the majority of its ski equipment at its facilities in France (Annual Report 2005 on Yahoo). The Harmonized System (HS) number for snow skis is 9506115000 (U.S. Census Bureau). This report discusses the costs and benefits of opening a ski manufacturing facility in New Zealand. It specifically analyzes the potential investment risk associated with that decision. This analysis on whether or not New Zealand is a suitable fit for a manufacturing facility under Rossignol's business model will depend on the following factors:
? Political, economic, and legal environment
? Natural, physical, and human resources
? Managing and culture
Political, Economic, and Legal Environment
Political Environment: New Zealand has a parliamentary system of government headed currently by Prime Minister Helen Clark. The long-term political environment of New Zealand is very stable and low-risk. According to the National Trade Data Bank (NTDB) 2005 Country Commercial Guide, foreign direct investment in ...