... 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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...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...
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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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... 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...
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...Research Paper Abstract Globalization has not only opened up new avenues for MNEs, but has also benefitted the emerging nations who have adapted to it. It has formed the basis of growth and development for most emerging nations of course other factors too are relevant). This research paper seeks to examine the international marketing strategies of MNEs in the automobile industry, specifically for the emerging nations, because as our subsequent findings will prove, that these markets are currently the most promising and will remain so at least for a few years to come. When we consider the emerging nations, the most promising ones are obviously the BRICs (reasons covered in the following sections). Hence, for readability and convenience purposes, we have limited our research to these nations. Keywords: Marketing strategy, BRIC, TRIAD, MNE, emerging markets, JV Objectives of Study: 1) International Marketing strategies followed by automotive companies in Emerging markets. 2) The study also aims at understanding whether the marketing strategy of these global automotive companies are justified by analysing its impact on the key statistically significant numbers of a company, i.e. the net profit, sales, operating income and the market share. Introduction MNEs continuously strive to grow, and they need better opportunities in doing so. The automobile industry has been proven to be one of the most promising and stable industries in the world. While the developed...
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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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...Introduction BRIC is used in economics to refer to the combination of Brazil, Russia, India, and China which make up over 42% of the world's population. These nations are going to play a major role in the future of global economy. BRIC or BRICs are terms used in economics to refer to the combination of Brazil, Russia, India, and China. General consensus is that the term was first prominently used in a thesis of the Goldman Sachs investment bank. The main point of this 2003 paper was to argue that the economies of the BRICs are rapidly developing and by the year 2050 will eclipse most of the current richest countries of the world. Goldman Sachs argues that the economic potential of Brazil, Russia, India, and China is such that they may become among the four most dominant economies by the year 2050. The thesis was proposed by Jim O'Neill, global economist at Goldman Sachs. These countries are forecast to encompass over thirty-nine percent of the world's population. Goldman Sachs predicts China and India, respectively, to be the dominant global suppliers of manufactured goods and services while Brazil and Russia would become similarly dominant as suppliers of raw materials. Cooperation is thus hypothesized to be a logical next step among the BRICs because Brazil and Russia together form the logical commodity suppliers to India and China. Thus, the BRICs have the potential to form a powerful economic bloc to the exclusion of the modern-day G8 status. Brazil is dominant in...
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...SPECIAL REPORT ON EMERGING MARKETS www.dreamgains.com White Paper Special Report On Emerging Markets ABSTRACT This paper examines the four emerging economies- Brazil, India, Russia and China (BRIC) - that are expected to play an increasingly important role in the global economy in the coming decades. These four countries have come to symbolize the exciting challenges and opportunities presented by dynamic emerging markets. The first part of the report outlines key features of these economies and their growing contribution to world output and trade. The second part analyses the contribution of India towards the same. By 2050, the BRIC economies will account for 44% of global GDP. The emerging market accounts for an increasing share of global activity. Two centuries of vigorous industrialization has propelled economies of North America, Western Europe and Japan into a dominant position in terms of their share of world output. But the past three decades have seen steady erosion from the peak they attained during the 1970. The emerging economies now account for over half of world output. These dynamic economies are changing the world economic order as they industrialize, improve their infrastructure and rapidly develop their service sectors. By 2050, they will account for almost 78% of global output. This projection uses realistic assumptions of annual growth rates of 5.3% to 2050, well below those posted in recent decades by the economies of developing Asia at over...
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...framework leading to potential business opportunities. According to Brandes (2014), “Emerging markets are no longer the uncharted markets they were in the past—they are advancing economies with growth opportunities and continually improving economic and political conditions”. The trend of emerging markets up surged from late 1990’s when 73% of developing countries outpaced America. The most impressive growth was reported in four biggest emerging economies; namely, Brazil, Russia, India and China which were abbreviated to BRICs in 2001. http://www.economist.com/news/briefing/21582257-most-dramatic-and-disruptive-period-emerging-market-growth-world-has-ever-seen In the year 2010, South Africa was added to the group making BRIC, the BRICS. Their economies grew at an average of 6% annually between 2000 and 2010, much faster than the growth of the Organisation for Economic Co-operation and Development (OECD) economies, which grew by an average of 2% annually during the same time period. (Global village). At present the BRICS...
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...Map the likely evolution of the BRICS. What indicators might companies monitor to guide their investment and actions? Over the next 50 years, Brazil, Russia, India and China_ the BRICS economies_ could become a much larger force in the world economy. We map out GDP growth, income per capita and currency movements in the BRICS economies until 2050. [pic] BRICS countries have also diversified their source of imports and are trading more with other large emerging economies and developing countries. They play an important role in the global economy, and their role in the future of global economics seems more evident. Demographic shifts are taking place and BRICS states, especially India and China, will have much of the world's youth, a driving force behind growth of consumer spending and innovation These countries have large numbers of highly qualified professionals and technicians, and their skilled labor means they will remain competitive across the globe. Their large domestic markets will create economies of scale that make BRICS' geographies central to global production and demand. And they will emerge as centers of innovation and new product development. Indian manufacturing and IT companies are making serious moves in China, and demonstrating their ability in high-tech engineering, software development, banking and foreign exchange trading. Chinese companies have an impressive export record and have emerged as important suppliers for infrastructure projects...
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...Research proposal of Project report on “Wealth management” Company: Ing Vysya bank ltd. * Objectives of Research 1. To study banking products and services 2. To study Wealth Management of ING Vysya Bank Ltd. 3. To propose different products for different kinds of customers as per their demographic characteristics. 4. To prepare a risk profile of customers. 5. To participate in promotional activities organise by bank. 6. To analyze whether Indian economic development is creating a broad and competitive wealth management market in India. 7. To discuss the factors that have acted as facilitators and obstructions for the growth of wealth management market in India. 8. From the above three objectives, to derive the potentiality and the future prospect of the wealth management industry in India. * Research Design During the tenure of the internship we are going to use Descriptive type of research design. Descriptive Research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, and how…. Descriptive Research deals with everything that can be counted and studied. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to write descriptive research, is to conduct a survey investigation. 1. What: I am going to meet existing customer...
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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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...Keiser WK 6 * Week 6 Discussion Week 6 Discussion Questions ____________________________________________ BRIC countries - Brazil, Russia, India, and China are emerging countries that have grown tremendously. However, India is fast becoming a major outsourcing center in the world. It is a talent-rich country that exports software to some 95 countries around the world and has a mature industry with world-class systems and quality. Not only does India offer technological promptness, flexibility, time-to-market and a competitive advantage, it also offers world-class infrastructure and numerous incentives for foreign investments. From conducting research, where do you see SHIFT in the world economy in three or even five years? . Your initial post must be 3 paragraphs 6 lines in length with a minimum of 2 peer-reviewed references in APA format. At the close of 2011, the global economy was at a very dangerous juncture, it showed a GDP growth of 3.4% with only a probability of 45% of obtaining this growth during the 2012 fiscal year. This was showing China economic stability had weakened (World Economy). Export dependent sectors that had been the force for a very strong domestic market was declining. While Brazil showed no growth and India has drops in both industrial and investment activities. As we saw in previous discussions and readings, one of the largest contributors to India’s economic growth and expansion was the influx in investment, which fueled their economy...
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...1) Brazil is home to the second largest male shaving preparations market, led by shaving gels/lotion category. Russia leads the male shaving preparations market in terms of value among the BRIC nations. China is set to be the most lucrative investment destination for the male shaving preparations market in future. http://www.thefreelibrary.com/Reportlinker+Adds+Male+Shaving+Preparations+in+the+BRIC+(Brazil,...-a0243892871 2) BRICs, Emerging Market Consumer Insights http://www.globalsherpa.org/bric-emerging-market-research-china-brazil-india 3) Gillette Group OOO was the clear leader of men’s grooming with a 43% value share in 2012. The company held an even stronger position in men’s shaving, the largest men’s grooming subcategory, where it took a 57% value share in 2012. Gillette Group is the company that is considered to have created the standards of modern shaving for men. It has invested heavily in the creation of innovative, more efficient products and large-scale promotional campaigns. The second largest player in men’s grooming was Beiersdorf OOO with a 9% value share in 2012, while all other companies did not manage to exceed 6% value share. http://www.euromonitor.com/mens-grooming-in-russia/report 4) HOW TO WIN THE RUSSIAN SHOPPER * Russians love new products and innovations. * More than ¾ of Russian Consumers (76%) are interested in trying new products. * 38% of Russian consumers frequently notice products on store shelves...
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...Sony Smart TV SWOT Strengths Substantial Brand Identity Sony is a corporate brand whose identity is deeply rooted and very well established in the minds of potential customers. Interbrand valued Sony brand at $11 million. Unique Design Sony’s unique design always make it stand out from the crowd. For example, Sony 55HX853 rather than mount the TV on a pedestal, as other manufacturers do, the TV slots into a long and quite wide frame. High Quality It expertly melds together supreme picture quality for both 2D and 3D material, excellent sound quality and a strong line-up of Internet services. Customer Loyalty There was a time when the best TV buying advice you could give someone was to get a Sony. Sony’s customer loyalty is still very high even today. Help & Support Get a 10/10 rating in Help& Support in 2013 Best Internet TV comparisons and reviews. Its help & support includes telephone, one-year-warranty, FAQs, Chat support, Email, Community Forums, Service Center Locator. Global Diversification Sony products and services are available throughout the world in approximately 200 countries and territories. This diversification helps to minimize the impact of adverse conditions that may arise in any one geographic region. Weaknesses Poor Proximity of Production to Customers Sony's production facilities are located far from its customer base. Approximately 60% of the annual production in Japan must be distributed to for other regions. Not Quite...
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