Accounting
Why did the New Zealand government offer Warner Brothers incentives to film “The Hobbit” in New Zealand? Analyse how this will affect the New Zealand film industry and New Zealand society.
Warner Brothers, one of Hollywood 's most famous studios, was founded in 1923 by four actual brothers: Jack, Sam, Harry & Albert Warner. On April 4, 1923, with help from a loan given to Harry Warner by his banker Motley Flint, they formally incorporated as Warner Bros. Pictures, Inc.
I believe that production of H0bbit movie is benefit for New Zealand economy and New Zealand Government provide that incentives to Warner Brothers. Warner Brothers is the front of any entertainment industry with its films to television, home entertainment/DVD, and inter-active creativity. New Zealand has a reputation of being in the Top Ten filming locations in the universe. Warner Brothers choose to make the film in New Zealand because they know that New Zealand infrastructure is pleasing and natural. New Zealand is an open economy and it is cost-effectively workable and attractive for large budget international productions.
Firstly, it is important to know that what kind of advantage to New Zealand with the Hobbit movie. New Zealand has a both advantages comparative and absolute. Comparative advantage means “A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.” (Gans, King, Stonecash, & Mankiw, 2011) And Absolute advantage means “The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.” According to new Law New Zealand have low labour cost means lower opportunity cost. And New Zealand has land, resources and pervious knowledge. For this two reason New Zealand have both advantages.
Warner Brothers has reached a deal with the New Zealand government to keep The Hobbit in New Zealand. As
Warner Brothers, one of Hollywood 's most famous studios, was founded in 1923 by four actual brothers: Jack, Sam, Harry & Albert Warner. On April 4, 1923, with help from a loan given to Harry Warner by his banker Motley Flint, they formally incorporated as Warner Bros. Pictures, Inc.
I believe that production of H0bbit movie is benefit for New Zealand economy and New Zealand Government provide that incentives to Warner Brothers. Warner Brothers is the front of any entertainment industry with its films to television, home entertainment/DVD, and inter-active creativity. New Zealand has a reputation of being in the Top Ten filming locations in the universe. Warner Brothers choose to make the film in New Zealand because they know that New Zealand infrastructure is pleasing and natural. New Zealand is an open economy and it is cost-effectively workable and attractive for large budget international productions.
Firstly, it is important to know that what kind of advantage to New Zealand with the Hobbit movie. New Zealand has a both advantages comparative and absolute. Comparative advantage means “A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.” (Gans, King, Stonecash, & Mankiw, 2011) And Absolute advantage means “The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.” According to new Law New Zealand have low labour cost means lower opportunity cost. And New Zealand has land, resources and pervious knowledge. For this two reason New Zealand have both advantages.
Warner Brothers has reached a deal with the New Zealand government to keep The Hobbit in New Zealand. As
Bibliography: TVNZ-One news. (2010, october 4). Retrieved from http://tvnz.co.nz/entertainment-news/australia-lobbying-hobbit-3816847/video : http://tvnz.co.nz/entertainment-news/australia-lobbying-hobbit-3816847/video Cheng, D. (2010, oct 27). Hobbit to stay in NZ. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10683486 Gans, J., King, S., Stonecash, R., & Mankiw, G. (2011). Interdependence and gains form trade. In Globalisation and Business Enterprise (pp. 266-267). Auckland: Custom for AUT University, Faculty of Business and Law. News, O. (2012, June 19). Warner Brothers shuts down NZ office. Retrieved from http://tvnz.co.nz/national-news/warner-brothers-shuts-down-nz-office-4937753/video rejuvenation, M. (n.d.). Ideology - The New Zealand Legion. Retrieved from http://www.nzhistory.net.nz/politics/the-new-zealand-legion/ideology Roger. (2010). Retrieved from Roger Award Winner. for the worst Transnational Corporation operating in Aotraroal?New Zealand : http://canterbury.cyberplace.org.nz/community/CAFCA/publications/Roger/Roger2010.pdf