Rise of Brics Economy and Its Impact on Global Stock Markets

9547 WordsMar 22, 201339 Pages
IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828 Vol. 2, No.1, February 2013 Rise of BRICS Economy and its Impact on Global Stock Markets Naganathan Venkatesh Research Scholar, NITTTR, Chennai, India Abstract The world is changing and becoming increasingly multipolar due to the emergence of China, India, Russia, Brazil and South Africa forming so called BRICS. The global influence of America is fading out due to the recent decline in their stock market and the emergence of other markets. The framework of the global economy has changed dramatically due to the collapse of Lehman Brothers in 2008. The change in swift happened from G7 to G20 (group of world’s largest 20 economies) and…show more content…
Since in recent years, numerous drastic occurrences have taken place in the stock markets of various countries, it is of great interest to know and examine if these changes have influenced the other countries policy making attributes in one way or another. III. PROBLEM BACKGROUND The economic rise of China and India is arguably one of most significant occurrence in the 21st century The rapid economic growth of BRICS countries have uplifted millions of their citizens every year from poverty. What is the impact on the region, given the ascendance of China and India? There are at least two possible outcomes: the rise of the two great Asian powers may challenge the US and instill fear among the smaller countries in Asia, or, China and India will act as new economic dynamos that will benefit the region even if US economic presence in the region is to decline in the future. This article explores the opportunities and obstacles to a “harmonious” region underpinned by the rise of BRICS. 67 IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828 Vol. 2, No.1, February 2013 IV. IMPORTANCE OF THIS STUDY This study looks at the rise of the BRICS economies and their rising importance to the global economy and the trends that will shape their

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