Entrepreneurship in Mexico : lessons for stakeholders in New Zealand

A “neighbour” separated by 6,000 km of Pacific, Mexico is by far New Zealand’s largest trading partner in Latin America and its 15th largest overall. With two-way trade worth NZ$584 million in 2002, many Mexicans grow up on New Zealand milk powder and baby formula. Not only is Mexico’s population of 100 million a huge potential economic partner in its own right, through its network of free trade agreements, Mexico has preferential access to 860 million consumers in 32 countries covering sixty percent of the world’s GDP.

Like New Zealand, Mexico is a “New World” country open to new ideas and innovation. Also like New Zealand, Mexico is known internationally for economic reforms that have created two outward-looking, world-trading, and competitive economies. During the last 50 years, the Mexican economy has shifted away from the once dominant sectors of agriculture and mining toward more industrial activities, especially in the major urban centres of Mexico City, Monterrey, Guadalajara, and other regional centres, where entrepreneurs are concentrated. With this shift, a new class of entrepreneurs arose with the support of the government.

One of those regional centres is the State of Sinaloa, with its capital city, Culiacán. Spearheaded by a visionary government and personified by the Secretary of Economic Development, Heriberto Felix Guerra. Secretary Felix is himself restaurant entrepreneur who owns a growing chain of “concept food” restaurants in the region.

It is no accident that when New Zealand Prime Minister Helen Clark visited Mexican President Vicente Fox Quesada on 15 November 2001, one of the topics of conversation was the fact that very day their two countries had been benchmarked as two of the world’s most entrepreneurial countries in the Global Entrepreneurship Monitor 2001 survey.

More germane, both countries have low-aspiration entrepreneurs who generate low levels of wealth and have low potential for growth. Both are dominated by micro-businesses that do not have high-value-added components and are not investment-ready and pre-qualified for risk capita.

This leads to the question, what can New Zealanders learn from the experience of Mexican entrepreneurship?

Effect of transformation mechanism (static or dynamic) on final ferrite grain size

A simple series of test was developed to highlight and compare the difference between the static strain induced transformation (SSIT) and the dynamic strain induced transformation (DSIT) mechanism in grain refinement and also to investigate the origin of the difference between the two mechanisms. The results showed that while the SSIT sets up a two-dimensional impingement among the ferrite grains, it cannot avoid their coarsening (normal growth). However, the DSIT forms a group of grains with a three-dimensional impingement which does not coarsen and maintains their fine size throughout the transformation, thereby, reduces the final average grain size.

Globalising water accounting : lessons from the globalisation of financial reporting

Water management is a matter of global concern. To underpin sound management of water scarcity and quality issues requires high quality, consistent, understandable and credible information. In a world first, accounting and water industry experts in Australia have developed a system of water accounting as an accounting sub-discipline, analogous to financial accounting to guide national and intra-national decision-making. With a conceptual framework and a Preliminary Australian Water Accounting Standard in place, Australia’s approach is being evaluated internationally within the water and mining industries. Its fate as a discipline will depend upon regulatory politics as well as the intellectual and practical rigour of the system and the rate of its adoption. In this paper, we explore the application to water accounting of regulatory theories that have been valuable to gaining an understanding of financial accounting standards development. We predict the international path of the water accounting a sub-discipline of accounting, as an outcome of political forces.

Theoretical study on behaviour of superplastic forming/diffusion bonding of bulk metallic glasses

Based on the behaviour of the superplastic deformation of metallic glasses and Pilling’s model, a diffusion bonding model suitable for metallic glasses is proposed in the present study. In the current model, the diffusion bonding processes consists of two stages: one is the plastic deformation stage and the other is the void shrinkage stage, in which, the atom diffusion and superplastic deformation are responsible for the void shrinkage. Applying this model to the diffusion bonding of a Zr based metallic glass, the predicted bonding time is in good agreement with the experimental result. A map for determining the bonding temperature and time to achieve high quality bonding in a Zr based metallic glass is suggested.

Are shocks to commodity prices persistent?

This paper considers the issue of whether shocks to ten commodity prices (gold, silver, platinum, copper, aluminum, iron ore, lead, nickel, tin, and zinc) are persistent or transitory. We use two recently developed unit root tests, namely the Narayan and Popp (NP) [14] test and the Liu and Narayan (LN) [26] test. Both tests allow for two structural breaks in the data series. Using the NP test, we are able to reject the unit root null for iron ore and tin. Using the GARCH-based unit root test of LN, we are able to reject the unit root null for five commodity prices (iron ore, nickel, zinc, lead, and tin). Our findings, thus, suggest that only shocks to gold, silver, platinum, aluminum, and copper are persistent.

The pricing of infrastructure initial public offerings : evidence from Australia

This paper explores first-day returns on infrastructure entity initial public offerings (IPOs) in Australia from 1996 to 2007. While a good deal has been written on the first-day returns of industrial and mining company IPOs and Real Estate Investment Trust IPOs, first-day returns of infrastructure entity IPOs have yet to be reported in the literature. The study uses ordinary least squares regression analysis to identify factors that might influence the percentage first-day returns theoretically available to investing subscribers and factors that might influence the aggregate amount of money left to subscribers by issuers. The study finds that first-day returns, on average, are not significantly different from zero. There is evidence, however, that suggests higher dividend yields and higher percentage direct costs of capital raising influence these first-day returns. The study also finds that infrastructure entity IPOs that seek to raise more equity capital leave less money on the table for subscribing investors.

Application of advanced analytical techniques to study structure-property relationship of hot rolled high strength low alloy steel

The microstructure-property relationship in conventional high strength low alloy (HSLA) steel was evaluated using data obtained from transmission electron microscopy (TEM) and atom probe tomography (APT). Atom probe tomography allowed the characterisation of fine TiC particles with average radius of 3±1·2 nm that were not observed by TEM. The increase in the yield strength of steel due to the presence of fine precipitates was calculated to be 128 MPa.

Vitamin D-fortified milk achieves the targeted serum 25-hydroxyvitamin D concentration without affecting that of parathyroid hormone in New Zealand toddlers

For young children, the level of vitamin D required to ensure that most achieve targeted serum 25-hydroxyvitamin D [25(OH)D] ≥50 nmol/L has not been studied. We aimed to investigate the effect of vitamin D-fortified milk on serum 25(OH)D and parathyroid hormone (PTH) concentrations and to examine the dose–response relationship between vitamin D intake from study milks and serum 25(OH)D concentrations in healthy toddlers aged 12–20 mo living in Dunedin, New Zealand (latitude 46°S). Data from a 20-wk, partially blinded, randomized trial that investigated the effect of providing red meat or fortified toddler milk on the iron, zinc, iodine, and vitamin D status in young New Zealand children (n = 181; mean age 17 mo) were used. Adherence to the intervention was assessed by 7-d weighed diaries at wk 2, 7, 11, 15, and 19. Serum 25(OH)D concentration was measured at baseline and wk 20. Mean vitamin D intake provided by fortified milk was 3.7 μg/d (range, 0–10.4 μg/d). After 20 wk, serum 25(OH)D concentrations but not PTH were significantly different in the milk groups. The prevalence of having a serum 25(OH)D <50 nmol/L remained relatively unchanged at 43% in the meat group, whereas it significantly decreased to between 11 and 15% in those consuming fortified study milk. In New Zealand, vitamin D intake in young children is minimal. Our findings indicate that habitual consumption of vitamin D-fortified milk providing a mean intake of nearly 4 μg/d was effective in achieving adequate year-round serum 25(OH)D for most children.