New Zealand Country Analysis

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 New Zealand is normally welcomed and encouraged without discrimination.   With a stable government that ranks third among the TI Corruption Index, meaning the third least corrupt country out of 159 others, New Zealand is considered a safe and reliable country to do business in (Internet Center for Corruption Research).   Under the works is an agreement to be one of the first countries to have free trade with China. Currently New Zealand does have... [continues]

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