Market Failure

The reality is that the current market is not generating the desired level of positive externalities (click on chart below).

Market Failure Model

Model depicting the market failure of the current education system in relation to the provision of Asia education services and the deficiency of net benefits to society.

In the existing environment where schools can autonomously and freely choose whether to adopt Asian language and studies or decide how much emphasis to place on Asia in its curriculum, only a certain segment of NZ youth are able to access such education services. This leads to unrealised benefits to society. If student participation in Asian language or studies was increased, and provision or supply of such courses was matched to the increased demand, the market could then yield greater positive externalities for society.