Does CIE limit New Zealanders' with entrance to University?

It seems that some of the CIE subjects aren’t recognised by NZ Universities, and it is also more difficult to get the points required for some University Courses, leaving NZ CIE students disadvantaged over NCEA students?

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You are correct.

NCEA is the national curriculum and so it is not a surprise that NZ universities will favour the national curriculum. If you are doing CIE subjects, you can perhaps look towards applying to the UK or the US?

Personally, if you are capable of doing well in CIE, you will get into any NZ university, so it doesn’t matter too much that you are disadvantaged over NCEA students. If you aren’t doing so well in CIE and you prefer to remain in NZ, then perhaps you can obtain some tutoring or switch to NCEA.

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As a CIE student, I don’t think it makes any difference.

CIE has a million subjects but most subjects taught in NZ schools are recognised. For the ones that are not, thats usually because they are significantly easier.
For example, it would be unfair to let A-Level Thinking Skills be equivalent to A-Level Physics because Thinking Skills is significantly easier than Physics and most high-achieving students can get away with a top grade with nearly no study.