...Global Economics Paper No: 192 Goldman Sachs Global Economics, Commodities and Strategy Research at https://360.gs.com The Long-Term Outlook for the BRICs and N-11 Post Crisis The BRIC and N-11 countries are emerging from the crisis better than the developed world. As a result, our long-term projections for the BRICs look more, rather than less, likely to be realised. It is now possible that China will become as big as the US by 2027, and the BRICs as big as the G7 by 2032. Within the BRICs and N-11, China, Brazil, India, Indonesia and the Philippines appear to be performing best. Bangladesh, Egypt, Korea, Nigeria, Turkey and Vietnam form a second group of countries that have performed broadly in line with expectations. Iran, Mexico, Pakistan and Russia have need for improvement. We show the ongoing dramatic BRIC influence in key product markets, with autos and crude oil as examples. Important disclosures appear at the back of this document Thanks to Dominic Wilson, Michael Buchanan, Paulo Leme and Swarnali Ahmed for their valuable comments, and to Alex Kelston for the Growth Environment Scores Jim O’Neill and Anna Stupnytska December 4, 2009 Goldman Sachs Global Economics, Commodities and Strategy Research Global Economics Paper Contents Summary Section 1. Where We Stand on the BRICs and N-11 Section 2. The BRICs and N-11 in the Aftermath of the Crisis 2.1 BRICs and N-11 Global Importance Continues to Rise 3 4 6 6 Higher growth contribution Increasing...
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...In economics, 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". The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs".[1][2][3] The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. It is estimated that BRIC economies will overtake G7 economies by 2027.[4] According to a paper published in 2005, Mexico and South Korea were the only other countries comparable to the BRICs, but their economies were excluded initially because they were considered already more developed, as they were already members of the OECD.[5] The same creator of the term "BRICS" coined the term MIKT, that includes Mexico and (South) Korea. Several of the more developed of the N-11 countries, in particular Turkey, Mexico, Indonesia and Nigeria, are seen as the most likely contenders to the BRICs. Some other developing countries that have not yet reached the N-11 economic level, such as South Africa, aspire to BRIC status. Economists at the Reuters 2011 Investment Outlook Summit, held on 6–7 December 2010, dismissed the notion of South Africa joining BRIC.[6] Jim O'Neill told the summit that he was constantly...
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...The BRICS economic success formula will continue to be imitated by aspiring economies in the developing world and particularly in Africa! The term ‘The BRICS’ was first quoted in Goldman Sachs report which was published in 2001, this term is an acronym for the emerging developing countries which are Brazil, Russia, India, China and South Africa (Wilson & Purushothaman, 2003, p. 2). In the last decade, these countries have been successful in the global economy and many developing countries across the world, predominately Africa are trying to emulate this success. The essay will show a brief overview of how successful the BRICS have become, once these reasons are established, the essay will focus on the core part of the question which is providing evidence showing how the developing world but in particular Africa are imitating the success of the BRICS. Finally the essay will finish with a conclusion which will summarise the main points which have been explained and discussed throughout the essay. The BRICS have been successful in the last decade, but forecasters believe that by 2050, the BRICs could become a very important source of new global spending and by the year 2032 Japan’s economy would become smaller that India’s and USA’s economy could shrink below China’s economy by the year 2041. If the BRICS combined their economies together, it would be larger than the G6 (Japan, United Kingdom, Germany, France, Italy, United States) by the 2039 (Wilson & Purushothaman, 2003, p....
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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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...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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...Brics summit “The aim of brics is to convert their growing economic power into greater geopolitical clout” BRICS is the title of an association of leading emerging economies, arising out of the inclusion of South Africa into the BRIC group in 2010. As of 2012, the group's five members are Brazil, Russia, India, China and South Africa. With the possible exception of Russia, the BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs. As of 2012, the five BRICS countries represent almost 3 billion people, with a combined nominal GDP of US$13.7 trillion, and an estimated US$4 trillion in combined foreign reserves Presently, India holds the chair of the BRICS group. Due to steady growth in BRICS nations in the recent past their share in global output has grown from 11% in 2005 to 18% in 2010. President of the People's Republic of China Hu Jintao has described the BRICS countries as defenders and promoters of developing countries and a force for world peace. The BRIC grouping's first formal summit commenced in Yekaterinburg on June 16, 2009, with Luiz Inácio Lula da Silva,Dmitry Medvedev, Manmohan Singh, and Hu Jintao, the respective leaders of Brazil, Russia, India and China, all attending. In 2010, South Africa began efforts to join the BRIC grouping, and the process for its formal admission began in August of...
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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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... 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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...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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...Global Business Research & Analysis 402 (SEC 103) Project # 1 June 8, 2012 Cover letter 7 Susan Street, Scarborough, Ontario, M1G1N6 Phone: 647-534-7155 cells: 647-534-7155 sugandeep88@yahoo.com June 8, 2012 Dr. Julie Nguyen Centennial College 941, Progress Avenue Toronto, Ontario M5B1M4 Dear Professor: I am happy to show you my research project on the topic “ Prospects of Canadian Trade and Investment with the Next Eleven”. In the research I have shown that the economic growth of the N-11 countries is likely to increase on a large scale in the years to come. Most of the major countries of the world are focusing on investing in BRIC (Brazil, Russia, India, China) but they are least concerned in investing with the N-11. In my research i have shown that investing in N-11 can prove out to be very profitable. I have particularly focused the trade and investment relationship between Canada and one of the Next Eleven countries that is Vietnam. In my research you can see the raw and products that Canada is exporting to Vietnam. The GDP of Vietnam is increasing rapidly year by year. Canada export business with Vietnam is rising up as the time is passing by. Canada is exporting the products that Vietnam needs. I have attached my research project paper along with this cover letter. I hope that my project will provide some value and knowledge about the subject though it being my first research project. Thanking You Yours sincerely Canada...
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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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...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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...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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...Economic Case Study: Proposed List Of Research Projects In International Development As a group you need to select one macroeconomic issue/policy from this list based on macroeconomic issue that interests you. I have also given a few study questions to assist you to critically think about the issues and the related policy solution. The study questions (the bulleted text) should only be used as helpful reference points for your further research on the economic subject of your interest. Accordingly please select your group so that each member can work on different dimensions of your research subject. Economic Issues related to the BRICS China: Facing the 21st Century China is without doubt currently the most dynamic force in Asia; it may be the most dynamic force in the world. Moreover, if China continues along its present trajectory, its growth will inevitably change the face of Asia. How did China do this? Where is China heading? What is happening in China? How did China do this? • What are economic strengths and challenges facing China today? • What is the impact of China's growth on other Asian countries? • What are the critical next steps for China in terms of its currency? What are their problems? India: Facing the 21st Century Some say we need to talk about “Chindia” as the new dynamic growth economy. India alone has shown growth of over 9 percent and is one of the fastest growing nations in Asia. • What are India’s economic...
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