...TABLE OF CONTENTS Definition of BRICS 2 A Brief History 2 BRICS Goals 3 First Declaration – Information Technology 3 Second Declaration – Industry Cooperation 4 Third Declaration – Agriculture 3 Reasons for Emergence of BRICS 5 Review of Economic Performance 6 Other Current Issues 7 References 9 Appendix 10 (BRICS Economic Data Table) _ DEFINITON OF BRICS A Brief History In 2001, Jim O’Neil – an economist at Goldman Sachs – first coined the term BRIC and ever since then it stood as an acronym for Brazil, Russia, India and China. At the time, O’Neil was trying to predict where Wall Street investors could place their investment dollars. In their search for future high growth and therefore high profits within a span of one to two decades, O’Neil came up with recommending the BRIC countries as potentially good nations where to park investment dollars. In that same year, he went on to predict that over the first decade of the twenty first century, the economies of those BRIC countries would increase in a very significant way; so much so, that it would “outpace growth of some of the world’s largest economies” (Sharma, 2012). In 2015 his prediction is presently valid, but mostly for China, which has achieved impressive economic growth in the last few years, and for India, which despite its ambivalent economic performance and socialistic labor tendencies, it has managed to post some notable levels of economic...
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...The BRICK countries have been attracting huge foreign direct investments in the recent past due to the peculiar nature of their economies. They are seen as emerging markets with huge economical growth and development that is experienced in any other economies. The major characteristics of the countries are the enormous consumer market comprising of large middle-income citizens and huge natural resources endowment. They also have sound financial institutions, excellent, efficient and modern communication, and transport and energy sectors. In addition, the economies have sound legal systems (Narayanamurthy Vijayakumar, 2010). According to (Khan, 2011) FDI is not only the financial component but covers other areas such as technology management, capital and market access. in their research (Philip, 2010) they found out that 1 percent of FDI in these countries resulted to about 0.07 percent increment in the countries’ GDP. The main impact of the FDI to the BRICK economies is as discussed below The investments received form foreign investors facilitate the country to venture into the global market. This is especially because the multinationals investing within these BRICK countries is able to produce goods in large scales for the global markets. This therefore enhances the countries to take advantage of globalization. Having firms that can produce for the international markets makes the country have favorable balance of trade, which makes the country favorable...
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...The BRICs markets are both the fastest growing and largest emerging market economies. The countries of Brazil, Russia, India and China are becoming ever larger forces in the world economy. They account for almost three billion people, or just under half of the total population of the world. In recent times, they have also contributed to the majority of the world GDP growth. For some time their growth rates have been faster than those experienced in the western economies, and they have been able to withstand the recent economic crisis with greater resilience (Geoff, 2010). According to various economists’ projections, it is only a matter of time before China becomes the biggest economy in the world. China is expanding its reach all over the world. For instance, they are making in-road into most African countries which use to be a reserve place for the west, thereby stopping the monopoly that the western economies had in this part of the world. Most African nations with their leaders prefer to do business with China because of their poor ethical standard and the wiliness to do anything just to win the hearts of these leaders who are less concerned about the well-being of their people. In fact, Goldman Sachs believes that by 2050 these BRICs countries will be the most important economies in the world thereby relegating the US to fifth place (EconomyWatch, 2010). By 2020, economists’ project that all of the BRIC countries should be in the top 10 largest economies of the world. Manufacturers...
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..... 3 2 MILITARY EXPENDITURES – BRIC COUNTRIES 2.1 BRASIL .......................................................................................................... 5 2.2 RUSSIA ......................................................................................................... 5 2.3 INDIA ............................................................................................................................................. 6 2.4 CHINA ........................................................................................................... 7 3 MILITARY EXPENDITURE - NATO ............................................................. 8 4 CONCLUSION ............................................................................................9 BIBLIOGRAPHY 10 3 1.1 INTRODUCTION AND STRUCTURE The acronym BRIC summerize countries: Brazil, Russia, India and China. The BRIC countries are promising due to its huge population and the long-lasting economic growth, that’s why expectations of the market development are high. The inventor of the BRIC concept, Jim O'Neill, chief economist at the investment bank Goldman Sachs, published the study,, Dreaming with BRICs: The Path to 2050 " in 2003. His sensational report predicted:,, Over the next 50 years, Brazil, Russia, India and China ,the BRIC economies, could become a much larger force in the world economy”. O'Neill forecasts that already in 2040 the BRIC countries could achieve together a stronger economic...
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...BRIC is an acronym standing for Brazil, Russia, India and China. Although can be categorized by importance of countries, it would be CIRB which is China, India, Russia and Brazil. The BRIC are both the fastest growing and largest emerging markets economies. These four countries encompass more than quarter of the world’s land area and in 2009 accounted for more than 40% of world’s population, 40% of the world’s foreign exchange reserves and 25% of world’s GDP. The states, which were earlier, accepted to consider as developing countries of Third world, promptly become economic giants of the new world. BRIC: Brazil, Russia, India and China – four markets everyone with the unique features, but thus unites them the potential generated by changes in political systems of these countries. As a result of these changes there was a consumer demand, which is formed by 43% of the population of the whole world. In roughly developing countries of BRIC there are five of the ten largest cities of planet where concentrated the huge amount of capital and millions of consumers who are aspiring up on social and economic ladder. The term BRIC was included into a business lexicon in 2003 after the economist of Goldman Sachs investment bank Jim O'Neill described future economic picture of the world. In his opinion, by 2050 the economic capacity of these four countries will allow them to become dominating economies, and to surpass in scales not only economy of the USA, but also economy of all of the...
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...The BRICs have developed exceptional growth in the last decade, rivaling the advance economies. The BRICs, coined by Goldman Sachs, consists of four countries: Brazil, Russia, India and China. These four countries are the fastest-growing markets in the world. The intensification of globalization has allowed these four markets to flourish. Even with the latest economic crisis, the BRICs are predicted to recover faster than the advance economies. By 2050, all the BRICs are forecast to past most advance economies. But, there are implications that hinder the BRICs full potential economic growth. There are distinctive factors for each of the BRICs that have helped gain influential economic power over the decades. The most influential and fastest growing market is China. China has been an isolated country both politically and economically in the world. It was not until the 1970s and 80s when China brought about economic reform. The main focus of these reforms was to change the economy away from the agriculture sector to international trade. These reforms allowed for China’s economy to flourish by opening its economy to the world for the purposes of trade and direct foreign investment. Since the liberalization of the economy, China has become the fourth largest economy with a growth rate of 9.5% over 26 years (Forbes). Its gross domestic product in 2009 was about $4.7 trillion (CIA). The second largest economic emerging country is India. India’s economy is controlled and...
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...Assignment on “Meet the BRIC” Case Study | ITB 301Section: 3Spring 2012Submitted to:Salma AkterLecturerDepartment of Business Administration.East West University, Dhaka.Submitted byArafat Rauf2009-2-10-345Date of Submission: 28th March 2012 | Letter of Transmittal March 28, 2012 Salma Akter, Senior lecturer East West University Subject: Submission of Assignment on “Meet the BRIC” case study Dear Madam, I have prepared an Assignment on “Meet the BRIC” case study. It was an energizing experience throughout the semester and preparing this assignment further enhanced my insight about International Business. I hope that this report fulfils your requirements and your feedback is very much necessary to overcome my faults and lacking. This will help me in my entire life. It is my pleasure to carry out this assignment under your supervision. I would like to request you to accept my report for further assessment and I will be available to answer any question for clarification. Thank you for your sincere support. Yours sincerely, Arafat Rauf 2009-2-10-345 Table of contents Title | Page number | - BRIC | 4 | Economic growth of BRIC | 7 | Question 1: Map the proposed sequence of the evolution of the economy of the BRIC’s. What indicators might companies monitor to guide their investments and organize their local market operations? | 8 | Question 2: What are the implications of the emergence of the BRICs for careers and companies in your country? | 8 | Question...
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... BRIC 2 Economic growth of BRIC 4 Question 1: Map the proposed sequence of the evolution of the economy of the BRICs. What indicators might companies monitor to guide their investments and organize their local market operations? 5 Question 2: What are the implications of the emergence of the BRICs for careers and companies in your country? 5 Question 3: Do you think recency bias has led to overestimating the potential of the BRICs? How would you, as a manager for a company assessing these markets, try to control this bias? 6 Question 4: How might managers interpret the potential for their product in a market that is, in absolute economic terms, large but, on a per capita basis, characterized by a majority of poor to very poor consumers? 6 Question 5: In the event that the BRICs fail to meet projected performance, what would be some of the implications for international business? 6 Question 6: Compare and contrast the merits of GNI per capita versus the idea of purchasing power parity, human development, and green economics as indicators of economic potential in Brazil, Russia, China, and India. 7 Conclusion 8 Reference 9 “BRIC” BRIC is a grouping acronym that refers to the countries of Brazil. Russia. India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four" BRICS is an...
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...Case Study The BRICs: Vanguard of The Revolution The BRICs, composed of Brazil, Russia, India, and China, are the future of the world’s most powerful economies and the current most accelerated emerging economies. Together they are home to nearly 2.8 billion people, about 40 percent of the planet’s population. They currently generate about 30 percent of world’s GDP. They have come a long way from the last 30 years or so, each one overcoming their own barriers and obstacles to achieve where they are today. They are all expecting to increase their income within the next 15-30 years exponentially, allowing for the economy to flourish and incorporate new markets that were otherwise less popular or almost non-existent. For example, cars in India and China were about 2 and 9 out of 100 people, respectively. They estimate that the total number of cars in both countries could rise from 150 million today to north of a billion by 2030. Not everything is positive however, there are skeptics who say there are problems such as the delusion that current trends will continue indefinitely and uninterrupted. That economic growth rates slow as the base of activity expands and advantages such as cheap labor or low-cost capital wane as growing demand increases marginal price pressures. That there’s always a black swan event, an unexpected, hard-to-predict impact that resets the game such as the internet, the collapse of the Soviet Union or the global financial crisis. Despite ever-present...
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...Institute of Professional Education and Research, Bhopal Business Environment Report on BRIC 2050 India performance and status Submitted To: Submitted By: Prof. (Dr.) Resham Chopra Bharat Naryani Priyank Ajmera BRIC BRIC are the acronym used to refer to the combination of the four biggest emerging-market countries: Brazil, Russia, India and China. According to Wikipedia BRIC (Brazil, Russia, India, and China) is a coalition of regional and superpowers reportedly proposed by Russian President Vladimir Putin. Predictions & Projections: Economists argued that, given sound political decision-making and good luck, the BRIC economies together could become larger than those of the world’s six most developed countries in less than 40 years. i.e BRIC economies of Brazil, Russia, India and China together would be larger than G6 (G7 excluding Canada) in USD in less than 40 years. Of the current G6, only the US and Japan may be among the six largest economies in US dollar terms in 2050. It is projected that the Brics to account for close to 40 per cent of global GDP by 2050 and to have become four of the world’s top five economies. It is projected that the Brics’ rise in absolute terms will push them up to the top of the global leaderboard, in per capita GDP their performance will not be quite so impressive. Reasons why India will rise: 1) Manufacturing productivity will drive growth. It’s performance will improve due to globalisation and increased competition...
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...GLOBAL BUSINSESS OPERATION ADEGBENRO ELEWADE MIB 34- 130226 INDIVIDUAL ASSIGNMENT QUESTION- You have been employed as a business consultant to advise a company manufacturing smart phones who wishes to explore the potential of doing business in one Latin American emerging market. You must produce a report that identifies the key issues that the company will face in your chosen market and secondly offer expert advice to attain business success in that market. CONTENTS- 1. Introduction. 2. View of Brazil’s economy. 3. Brazil as a BRICS Economy. 4. Market for smart phones in Brazil. 5. Using the porter’s five forces to analyse the market for smart phones in Brazil. 6. Competitors existing in the market. 7. How to enter the market. 8. Constraints to success for the company (using PESTLE model). 9. How to achieve a sustainable competitive advantage. 1. INTRODUCTION The Cost (this involves the legal cost, corruption, lack of infrastructure), Benefits (size of the economy or economy growth),Risk (political-social unrest, economic mis-management) analysis has been used to analyse the favourable emerging market in Latin America which is Brazil. The main reasons for choosing this market will discussed in details. 2. OVERVIEW OF BRAZIL’S ECONOMY The chosen market is BRAZIL which is an emerging market and also the largest of the Latin American nations and the second largest in the western hemisphere with...
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...In the eyes of Jim O'Neil, managing director and head of Goldman Sachs Global Economic Research, the global crisis has only been a blessing for China, accelerating the global power shift from the West to the East. O'Neil, based in London, coined the acronym BRIC to refer to the fast growing developing economies of Brazil, Russia, India and China. "I think China has had a really good crisis in some ways. It has been good for them, as it forced them to stop being so dependent on exports. I think our 2050 'dream' scenario for BRIC has become more likely, rather than less, since the crisis. The trend growth in Brazil and India seems to be rising also," O'Neil told The Korea Times. According to a Goldman Sachs report, China will dominate the global economy in 2050 with a GDP of $70 trillion, followed by the U.S., India, Brazil and Russia. "I think the likelihood of China challenging the number one spot of the U.S. has actually risen, as now China's growth is going to be determined by domestic forces and the rise of consumption, so it is more sustainable," he said. "On our latest long-term estimates, we think that China might overtake the U.S. by 2027 (in terms of GDP), and with it, the combined GDP of the BRIC countries will become bigger than that of the G7," he added. The veteran economist forecast that the U.S. financial market and dollar will start losing their dominant positions in the global financial market a decade from now. "I think the U.S. financial markets...
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...As the world’s economy continues to rebound from recession, many companies and brands are focusing on the growth of emerging markets—particularly BRIC markets. However, as discussed in Carrie Lennard’s article “BRIC Key for Future Growth” in the June 2010 issue of GCI magazine, Russia—the “R” in BRIC—felt the economic downturn quite strongly (“Growth in premium beauty products slid down from 20% during 2006–2007 to 0% 2008–2009.”) and is still not seeing some of the other gains of similar markets. However, as discussed below, some beauty brands are still targeting the country as a key for growth in the coming years. To note, Shiseido announced plans to introduce its corporate culture and promote sales at a Shiseido Exhibition/1872–2011/Empire of Beauty event in Russia. To be held from March 1 to March 20, 2011, the event will take place in the arcade of GUM, the landmark in front of Red Square that is one of Moscow’s largest department stores and an attraction for tourists worldwide, as well as Russian consumers. The event space is nearly 90 meters long, and the showcase will allow visitors to witness Shiseido’s history and aesthetic sensibility through exhibits of an array of products, posters and other items introducing Shiseido’s corporate culture. Moreover, a sales promotion corner will offer trials of skin care products from the global brand Shiseido premium cosmetics lineup. This initiative advances Shiseido’s aims to further enhance its presence while continuing to...
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...Case Study #2 – Black Angus Steakhouse 1. What variables need to be considered in developing a list of potential countries ? There are multiple variables to consider when a company wants to expand its operations outside the United States : market potential, customer characteristics, business cycles, competition (is there any competitors already in this market), local culture (make some research about the culture, to fit the needs of people), economic and political outlook (what is the situation of the country at that moment), government policies, financial requirements, labor markets, taxation, legal environment (what are the laws in that specific country), crime and corruption (if this is a safe place to work), infrastructure, foreign trade environment and current and future costs of building a business and brand (is it profitable to expand there). 2. From the list of top “candidates” what data should you collect on each market? The marketing department should collect data for each market about overall population and target buyer population, spending power per capita, category penetration rates, overall growth of categories, share of each brands, media costs, previous marketing expenditures, category profitability, competitor metrics. Thanks to this data, Black Angus Steakhouse can build predictive models in order to know which market will be the most profitable and what will be their future position in each market. 3. What market entry strategy would...
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...investments and actions? BRIC companies are on the verge rapid growth of their consumer markets. History shows when consumer demand takes off when GNI per capita reaches levels between $3,000 and $10,000 per year.) In Russia there is already significant evidence of the growth of consumerism during the past decade. There are also early signs of similar trends in China and India, but they have yet to cross the threshold. However the BRICS stated that Russia middle class is showing rapid growth. It is expected that within a decade or so, each of the BRICs will show higher returns, increased demand for capital, and stronger national currencies. Thus, foreign firms will want to monitor major economic indicators such as GNI, PPP, and the Human Development Index, as well as developments in the cultural, political, and legal environments of those nations. The indicator that companies might monitor to guide their investments and actions is the futures of widespread poverty and distorted income distributions. What are the implications of the emergence of the BRICs for careers and companies in your country? The emergence of the BRICs effect on our country has some advantages and disadvantages, because it may create new career opportunities, more product options, and better price and/or quality for products because of competition. But on the other hand it may affect negatively the domestic firms more over it may cause some kind of monopoly as the BRICs taking the lead. Do you...
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