Rise of Brics Economy and Its Impact on Global Stock Markets

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.

The rapid economic growth trends demonstrated by China and India are currently at the height of debate amongst world leaders and economists. According to “Dancing with Giants: China, India, and the Global Economy”, edited by L. Alan Winters and Shadid Yusuf (2007), these countries are very unique in that their economic patterns of growth continue to increase and sustain momentum over an extended period of time while dealing with growing populations. The fact that these countries have illustrated a sustained pattern of growth means that they are beginning to, or have already shifted the balance of power within the global community; however, many scientists believe that this trend has shown negative side effects within the social and political settings because inequalities within both regions continue to rise. In Dancing with Giants: China, India, and the Global Economy (2007) the author states that, “Chinese and Indian authorities face important challenges in keeping their investment climate favorable, their inequalities levels at intervals that do not undermine growth, and their air and water quality at acceptable levels” (8). In a discussion, I will deconstruct the effects of China and India’s economic growth on social inequalities.

BRIC nations are defined as becoming the largest economic bloc in the world by 2050. The foundation therefore among other aspects lies in the population of these countries. Brazil has a population of 186 million (in 2006) people. Further can be seen that the human development index (in 2003) can be found at 0.792, which is following Russia the highest index.

Several growth factors contribute to India’s burgeoning national and global economic presence. Having the largest population of youth on the planet means that India’s workforce is surging, especially in the areas of agriculture and manufacturing. The nation’s growth in production, income, and education leads to a rising middle class consumer base. Finally, the growth of India’s economy is facilitated by political leadership changes and government initiatives that favor an open economy and global competition.

According to The World Bank there is a great possibility that developing countries may see a fourth consecutive year of disappointing economic growth in 2015, and may even encounter a fifth negative year in 2016. In the past couple months; developing countries have begun to see the repercussions of low prices for oil and key commodities (The World Bank, 2015). According to World Bank President Jim Yong Kim, "Developing countries were an engine of global growth following the financial crisis, but now they face a more difficult economic environment”(The World Bank, 2015). Despite recent downturns for emerging markets, Chile has been on the up rise since taking a large hit to GDP growth in 2014. In this paper we will analyze the Chilean Economy, its financial systems, exchange rate systems, as well as some of the risk involved in investing in Chilean markets.

The topic of emerging economies has been hot over the past decade or so, most notably the emergence of the group of countries known as the BRICS nations (Brazil, Russia, India, China and South Africa). Growth rates in these economies far exceed that of more developed nations. In 2011-2013, BRICS economies posted average growth rates of 4.11% compared to 1.37% in developed economies (Lukov, 2010). By 2020 all BRICS should be in the top 10 largest economies in the world, and by 2050, they will be the most important economies, relegating America to the 6th largest economy in the world (The BRIC countries: Brazil, Russia, India and China, 2010). I have chosen to concentrate my study upon the Brazilian performance. I have chosen to do so as in

At the time, these four countries only accounted for a fraction of global Gross National Product. It is believed that between 40 and 50 years from now, these nations may catch up to the OECD countries, countries which include the United States, Germany, the United Kingdom and over a dozen others, in economic ability and performance. By means of standard of living, political agenda, and religious and cultural background, the BRICs represent four incredibly diverse countries. All, however, are marked by large economic growth potential and have caught the attention and dollars of international investors everywhere.

What we want to focus now is the influence of China over Southeast Asia from the aspect of economy and what the foreign policies that involved between China and Southest Asia. First of all, we like to discuss on “the potential transmission of China’s monetary policy shocks to equity markets in Southeast Asia” (Johansson, 2010, p. 1). According to (Johansson et al., 2010, p. 2) importantly for us to understand first, how China’s economy and its economic policies has given effect over other states as China has became one of the biggest world economy holders. For the monetary system in China, it has established from

The U.S. Federal Reserve is expected to begin to gradually raise policy interest rates in the near term, an event widely referred to as “liftoff”. As markets over the world gear up for the first ever rate hike by Federal Reserve in a decade, the economist and policymakers still seem to be in two minds over its impact. The ongoing American recovery, supported by recent job market data has made the case for a hike even stronger. On the other hand, many experts are cautioning against the possible implications on the world economy. Weather Fed hikes rate on 17 September or not, most agree that sooner or later, a hike is imminent. This has fueled growing fear of renewed volatility in emerging economies’ currency, bond, and stock markets. The concern is understandable: When the Fed signaled in 2013 that the end of its quantitative-easing (QE) policy was forthcoming; the resulting “taper tantrum” sent shock waves through many emerging countries’ financial markets and economies.

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

Nevertheless the fact cannot be undermined that in more recent times, the issuances of bonds and securities in emerging markets have seen a surge in financial capital. USA has played a major role in financial capital market deepening both within the country and outside the country i.e. the world financial capital assets was $56.1 trillion for the country that accounts for nearly one-third of the global total.

There is a long list of developed countries just as developing countries, but we will focus on England, Pakistan and their respective Stock Exchanges. The sole purpose of the report is to compare and contrast the stock

There are many significant change in the world economy occurred, marked by globalization each country has different speed of development under different political and cultural background. During this period, Such as the United States of America 's economic status from the rapid development to the decline, then move to the current stable trend. Brazil, Russia, India, China, which named ‘BRCIS’ those developing countries’ economic performances are very catch the attention in recent years. The decline and rise of these countries ' commercial economy are closely related to their political culture. Therefore, it attracted the attention of scholars and research circles.

India with about 1.2 million populations and china with about 1.3 billon population are two big demographic and emerging countries in the world .Over a past few decade India’s combination into the economic has been accompanied by remarkable economic growth (World Bank 2011¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). India’s total GDP (gross Domestic Product) growth was 5.5% in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India poverty has been decline from 37.2% in 2004 to 29.8% in 2010 (world bank 2011).The major economic growth sectors

India is one of the country that developing in terms of trading in the world, which might be held that in India is not different from China, because, India is one of the country have low labour cost, raw material and so on. Moreover, India is the world 's biggest majority rules system. Over the previous decade, the nation 's incorporation into the worldwide economy has been joined by financial development. India now has risen as a worldwide player. (World Bank, 2016).