How trying to solve a BOP problem led to the growth of a massive industry

Although this five minute clip is essentially a commercial for New Zealand’s DB Breweries, it explains how the growth of the company came about because of the decision of the government of the day to increase the tariff on imported beer, being part of a package of measures to reduce the country’s BOP deficit.

The youtube clip of the “short film” can be seen here.

I actually saw the clip when undertaking some professional development with a colleague at the movies - one of the advantages of working in a school in the CBD (the movie was “The Social Network” - the facebook story and was excellent). Our reactions to the clip were very similar, a) that is an interesting case study to use to liven the dry topic of BOP deficits and b) the images of again having workmen filling the pubs and ordering copious amounts of cheap beer lends itself well to a discussion of negative externalities!