Hobbit Essay

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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. The production of “The Hobbit” has been a saga as long as the films themselves, which has caused delays in bringing Middle Earth, back to the big screen. After the great success of the Lord of the Rings trilogy and the benefits gained from filming in New Zealand, there has been no wonder why the fight for “The Hobbit” took place between Warner Brothers and the New Zealand government. “The Hobbit” has received much international attention, with a number of countries showing interest in the films and production value said to be $670 million. After threats of union action and greater incentives from offshore countries offering greater tax rebates to Warner Brothers, the decision of whether “The Hobbit” would be filmed in New Zealand was unclear. However, once again New Zealand will be put on the world stage as a result of the New Zealand government offering Warner Brothers extra incentives and making changes to the Employment Relations Act to ensure filming of “The Hobbit” stays on New Zealand soil with the hopes of following the growth and tourism boom achieved from the previous Lord of the Rings films. The relationship between Warner Brothers as transnational corporation (TNC) and New Zealand as a nation-state caused competition and conflict due to the case of “The Hobbit”. A nation-state’s desire to ensure stability, security and opportunity for all of its citizens may, for example, come into conflict with the desire of a transnational corporation (TNC) to minimise its costs by reducing its workforce, lowering their working conditions, or even by shutting down its production facility all together and re-locating to a foreign location with lower wages. [ (Skilling, 2011) ]

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