Questions and Answers on BRIC Nations

The process of integration of economies around the world, known as globalisation, has catalysed the development of Brazil as a powerful emerging economy, through the expansion of trade and investment. Emerging countries are defined as those progressing toward becoming more advanced, through rapid growth and industrialisation. Consequently, Brazil’s rapid economic growth has secured its place in BRICS, an association of five major emerging economies, Brazil, Russia, India, China, and South Africa.

Over the years the global economy has seen a rise in so called ‘emerging markets’. These are developing economies which have exceeded economic performance in respect to their developing counterparts. These economies are newly industrialized and are on their way to becoming developed economies but have not yet reached that status. The more common and likely heard developing economies consists of BRIC (Brazil, Russia, India, and China) followed by Mexico, South Korea, Turkey, Saudi Arabia, and Indonesia. Developed nations (MEDC) include the westernised countries such as the U.S, the U.K and Japan. In 1999, Dr. Kvint published this definition: "Emerging market country is a society transitioning from a dictatorship to a free-market-oriented-economy, with increasing economic freedom, gradual integration with the Global Marketplace and with other members of the GEM (Global Emerging Market), an expanding middle class, improving standards of living, social stability and tolerance, as well as an increase in cooperation with multilateral institutions" This essay will locate the common characteristics that emerging markets share.

Currently, economic world are more dynamic. Many developed countries such as European Union, US, and Japan as the largest economic are going to be overtaken by developing countries, particularly BRIC. BRIC stands for Brazil, Russia, India, and China. Those countries are growing rapidly and making contribution to the world economy as Goldman Sachs (2010) said, “Between 2000 and 2008, the BRICs contributed almost 30% to global growth in US Dollar terms, compared with around 16% in the previous decade”. Furthermore, even Goldman Sachs predicted in 2050 the BRIC could account for almost 50% of global equity markets. This essay will compare and evaluate critically economic growth prospect of China and Brazil as two BRIC countries in the context

Looking ahead a few years, it is expected that the emerging markets economies will change the dynamics of the world economy, and of trade patterns and global finance, in profound ways.

Brazil’s market size and ample resources make it possible for them to be a key player in the growing global economy, capable of responding to global demand. The major challenge for economic growth is not lack of demand, it is the capability to handle this demand, and the problem is a lack of infrastructure.

BRIC countries have been projected by economists to be some of the emerging economies in the near future. There is increased market potential in those countries hence leading to the possibility of more firms developing their roots in those countries. These projections are facilitated by the high population growth rate being experienced in those countries hence providing market and cheap labor for production.

The countries of Brazil, Russia, India, and China, dubbed “BRIC” by Goldman Sachs’s Jim O’Neil, have been grouped together because they are in the same stage of economic development but can’t quite be considered developed countries. Recently, these countries have experienced explosive growth in Gross Domestic Product (GDP) and overall global trading power. Since 2008, when most of the world’s developed nations were in periods of slow growth, no growth, or even contraction, these developing countries were experiencing high growth, sometimes in the double digits percentages. These countries have done this by seeking out opportunities for cooperation in trade, investments, infrastructure development and other areas.

At around the same time, Jim O’Neill, the head of global economic research at Goldman Sachs, coined the acronym “BRICs” to refer to Brazil, Russia, India, and China, the emerging market

A nation that achieves economic hegemony must stand ready to stabilize financial flows in when global crisis arise, for example natural disasters. To continue as a hegemon, the nation must prevent other nations from replacing its economic power. It is of vital importance to the Intelligence Community to assess other countries’ potential for challenging the United States as a global economic hegemon. Both India and China are viewed globally as emerging global economies. The recent economic rise of China and India should attract a great deal of attention. Together, China and India account for one-fifth of the global economy and are projected to represent a full third of the world 's income by 2025. Routinely, one finds a “Made in China” label on manufactured goods or utilizes a company’s help line that is located in India. As the world becomes increasingly aware of the growing economies of India and China, one can articulate how India stands a greater chance in challenging the United States’ economic power based on reviewing their capital, labor force, and resources.

The largest country in South America is Brail by far. It is also the fifth largest country in terms of population. (2) “The only countries that are more populated are India, China, The United States and Indonesia”. (9) “Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil’s economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets”. The current population is over 200 million and steadily growing, which means, there is still a lot of room for growth in the Brazilian economy. Not only is Brazil large in size and population, it is also widely diverse so companies can market more than one particular group of people. (2) “The country is ranked seventh in the world for Gross Domestic Product (GDP) according to International Monetary Funds (IMF) World Outlook Database”. Having a ranking that high in the world is eye catching for any business looking to expand its brand into other markets. This ranking shows that not only do business have the means to produce products there, but that consumers have the funds to consume the products as well. This proves to make Brazil a prime market for companies to expand on a global scale. Brazil is

In 2013, emerging markets accounted for more than half of the world GFP based on purchasing power, per the International Monetary Fund (IMF). In 1990 they accounted for less than a third of a much smaller total. From 2003 to 2011 the share of world output provided by the emerging economies grew at more than a percentage point a year. The remarkably rapid growth the world has seen in these two decades marks the biggest economic transformation in modern history. It’s like will probably never be seen again.” (economist) “The most impressive growth was in four of the biggest emerging economies: Brazil, Russia, India and China, which Jim O’Neill of Goldman Sachs, an investment bank, acronymed into the BRICs in 2001. These economies have grown in different ways and for different reasons. But their size marked them out as special—on purchasing-power terms they were the only $1 trillion economies outside the OECD, a rich world club—and so did their growth

It is clear that this new global phase is both creating opportunities and threats for both developed world companies as well as those from developing countries (Kluyver, Pearce, p37, 2012)

South Africa’s BRICS partnership will benefit Africa. Industrialisation will speed up Africa’s economic development. Since membership with BRICS, there has been a significant increase in trade and economic relations between South Africa and BRICS countries. Trade between South Africa and other BRICS countries has increased by an astonishing 15.4 percent. South Africa’s membership of BRICS has provided tangible economic surpluses. The negative trade balance with BRICS countries has substantially decreased to –R23 million. Two agreements have been concluded that will promote intra-BRICS currency convertibility that will improve mutual trade and investment. These two agreements are the Master Agreement on Extending Credit Facility in Local Currency and a Multilateral Letter of Credit Confirmation Facility Agreement. Membership of BRICS has allowed south africa to reinforce their coooperation on peace adn security issues. South africa has also provided BRICS with the ability expand its geographic inclusiveness and representivity. Trade between BRICS countries and Africa is estimated to increase by an astounding $380 billion US dollars from 2010 to 2015. BRIC nations occupy 26 percent of the worlds land. The four emerging markets alone make up 12.8 percent of the global trade volume. a leading global investment banking, securities and investment management firm, Goldman

For the last two decades, both India and China have grown at twice the global rate and If this trend continues for next few decades, with their vast labor supply, favorable demographics, and aspirations for reaching the developed world per

Since the 1990s, the world economy has undergone profound historical changes that focus is reflected in the global economy as a whole, has never been a time like this, the economic development of all countries closely together to form the world economy integration, both in developed and developing countries, or countries with economies in transition, businesses dependent on the world economy is growing, the development of the world economy, is an inevitable result. Economic integration in the world system is highly dependent on individual enterprises, whether a country or a change in the enterprise, will cause a corresponding change in other sectors, resulting directly or indirectly. In every enterprise, it is possible to break through their limitations in the national market size and resource allocation, and a place in the fierce international competition, so that the world economic integration has become the first international development of the power companies