Question

Why has New Zealand recently begun to diversify its trading partners?

Answer 1

New Zealand has recently begun to diversify its trading partners because Britain entered the EU, which imposes tariffs on non-members, including New Zealand.

Answer: Option C

Explanation:

In 1973, when Britain joined the European Union (Then European Economic Community) it came as a big shock to New Zealand as majority of its exports used to go to Britain. After this development New Zealand started to diversify its trade by reaching out to other potential trade partners.

The country had brought serious of reforms in the economy since 1980's by opening up its economy and today New Zealand exports its wide arrange of products to China, U.S, European Union and Australia.