Via Owen Williams on Twitter came this gem:
Life in New Zealand pic.twitter.com/Fnt30ZCKR0
— Owen Williams (@ow) July 22, 2014
This is true, shipping is a pretty big deal. However, Aaron Schiff pointed out another common cost of being in NZ:
— Aaron Schiff (@aschiff) July 22, 2014
This is of course the curse of distance – both from the “production” of goods and from large centres of “consumption” (where the fixed cost of transporting can be spread over more customers). The OECD has discussed this cost before, and NZ’s Productivity Commission also mentions it when discussing why productivity in New Zealand is relatively low.
Nice to see Amazon giving us some concrete examples we can use to discuss the phenomenon though – well nice until you want to buy anything 😉