Brics Economy

In: Other Topics

Submitted By zalaku8
Words 376
Pages 2
Assignment-1: National Income
The Dictionary definition of the term National Income is the total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation.
Measuring the level and rate of growth of national income (Y) is important for seeing: * The rate of economic growth * Changes to average living standards * Changes to the distribution of income between groups within the population
National Income can be measured by three approaches:

1. Aggregating National Production - the output method 2. Aggregating National Income - the income method 3. Aggregating National Expenditure- the expenditure method
Most pre-dominant method is Expenditure method which can be summarized as below-
Y = C + I + G + (X-M)
Where,
Y = Total demand for domestic output (GDP)
C = consumption spending by households
I = investment spending by businesses and households
G = government purchase of goods and services
X = exports of the country
M = imports of the country

Tabular data of the components of GDP-

| (All values in USD billion dollars) | | | | | | | Gross National Income | Gross Domestic Product | Gross National Product | Exports | Imports | Government Spending | Consumer Spending | South Africa | 770.8 | 384.31 | 770.8 | 86.455 | 97.224 | 159.94 | 498.012 | Brazil | 2329 | 2533 | 2169.624 | 238.952 | 235.86 | 487.42 | 1383.48 | India | 1704 | 1841.7 | 1666.08 | 317 | 439 | 114 | 614 | China | 6673.94 | 8230 | 8311.585 | 2207.262 | 1955.274 | 1149.608 | 3065.618 | Russia | 1522.27` | 2014.8 | 1944.01 | 523.98 | 335.08 | 216.39 | 699.23 | Indonesia | 844.27 | 878.04 | 742.47 | 180.968 | 184.001 | 19.928 | 98.107 |

Aggregate GDP data for all the nations for the past 10 years....

Similar Documents

Assignment on Bric

Words: 2774 - Pages: 12

Free Essay

Brics: the Vanguard of the Revolution

...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...

Words: 1322 - Pages: 6

Meet the Bricks

... 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......

Words: 578 - Pages: 3

Free Essay

Bric

...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......

Words: 1522 - Pages: 7

International Marketing

...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......

Words: 4313 - Pages: 18

Free Essay

China Economic Article from Goldman Sachs

...overtake the United States in economic size by 2027 as the world's third-largest economy has benefited from the ongoing global economic crisis, according to a noted global economist. 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......

Words: 526 - Pages: 3

Free Essay

Lg Electronics: Global Strategy in Emerging Markets

...LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically disadvantaged South Korean economy gave LG an awareness of its social responsibility, which it displayed most effectively in......

Words: 711 - Pages: 3

Free Essay

Shiseido in Russia

...As the world’s economy continues to rebound from recession, many companies and brands are focusing on the growth of emerging markets—particularly BRIC markets. However, as discussed in Carrie Lennard’s article “BRIC Key for Future Growth” in the June 2010 issue of GCI magazine, Russia—the “R” in BRIC—felt the economic downturn quite strongly (“Growth in premium beauty products slid down from 20% during 2006–2007 to 0% 2008–2009.”) and is still not seeing some of the other gains of similar markets. However, as discussed below, some beauty brands are still targeting the country as a key for growth in the coming years. To note, Shiseido announced plans to introduce its corporate culture and promote sales at a Shiseido Exhibition/1872–2011/Empire of Beauty event in Russia. To be held from March 1 to March 20, 2011, the event will take place in the arcade of GUM, the landmark in front of Red Square that is one of Moscow’s largest department stores and an attraction for tourists worldwide, as well as Russian consumers. The event space is nearly 90 meters long, and the showcase will allow visitors to witness Shiseido’s history and aesthetic sensibility through exhibits of an array of products, posters and other items introducing Shiseido’s corporate culture. Moreover, a sales promotion corner will offer trials of skin care products from the global brand Shiseido premium cosmetics lineup. This initiative advances Shiseido’s aims to further enhance its presence while continuing......

Words: 429 - Pages: 2

Bric Countries Importance in Int'L Business

...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.......

Words: 1409 - Pages: 6

Free Essay

Article

...of the article: «5 Lessons From the Rise of the BRICs» Veronika Kozachok 4th Group Kyiv – 2014 5 Lessons From the Rise of the BRICs DEREK THOMPSON AND MAX FISHER Learning from the successes and stumbles of the world's great rising economies In 2001, Jim O'Neill, the chairman of Goldman Sachs asset management, famously predicted the four fastest-growing emerging markets for the decade. We know that foursome by the acronym BRIC: Brazil, Russia, India, and China. That the economic world remembers his prediction owes as much to the handiness of the acronym as it does to the accuracy of his forecast. China, India, and Brazil are among the most dynamic and exciting emerging powers in the world. Indeed, to call them "emerging" feels like a slight. India is the world's largest county, China the world's largest manufacturer, and Brazil the Western Hemisphere's most vibrant expanding consumer economy. (Russia, the runt of the group, is beset by awful demographics and a weak private sector outside of its natural resources). As investors and economic analysts cast about for the next batch of high-growth markets, let's pause to recall the lessons from the BRICs: (1) Work on the middle-income transition plan; (2) Trade, trade, trade; (3) state capitalism can work; (4) corruption kills; (5) strong civil society matters. (1) THE RISE OF THE MIDDLE CLASS Perhaps the broadest lesson from the emergence of the BRICs is that no rise is complete without the triumph of...

Words: 3655 - Pages: 15

Emerging Market

...government to a free market economy, increasing economic freedom, gradual integration into the world market, an expanding middle class, improving living standards, social stability and deepening cooperation with multi-institutions ". Furthermore, In 2008 Emerging Economy Report, the Center for Knowledge Societies defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization." The notion of the author/ in simple terms with regards to emerging markets is that it is a particular economy which stands ahead of developing economies with more attractive economic and political conditions and institutional 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%......

Words: 1526 - Pages: 7

Free Essay

Brics Countries

...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......

Words: 3555 - Pages: 15

Free Essay

Sony Smart Tv Swot Analysis

...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......

Words: 636 - Pages: 3

Brics

...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 trade shares Rebalancing current accounts Domestic demand and economic resilience 2.2 BRICs Market Performance in......

Words: 13484 - Pages: 54

Free Essay