Meet the Brics

Topics: Economics, Economy, Purchasing power parity Pages: 3 (813 words) Published: April 27, 2011
1.Map the proposed sequence of the evolution of the BRIC’s economies. What indicators might companies monitor to guide their investments and organize their local market operations? The BRIC’s economies are on the verge of the rapid growth of their consumer markets. (Experience indicates that consumer demand takes off when GNI per capita reaches levels between $3,000 and $10,000 per year.) In Russia there is already significant evidence of the growth of consumerism during the past decade. There are also early signs of similar trends in China and India, where the growth of their middle classes is very rapid. It is expected that within a decade or so, each of the BRICs will show higher returns, increased demand for capital, and stronger national currencies. Thus, foreign firms will want to monitor major economic indicators such as GNI, PPP, and the Human Development Index, as well as developments in the cultural, political, and legal environments of those nations. The economic environment of BRICs shapes its attractiveness to foreign investors. In terms of specific, China and India will be the dominant global suppliers of manufactured goods and services, while Russia and Brazil will become the principal suppliers of raw materials. Collectively, on almost every scale, they will become the largest entity on the global stage. Managers should assess economic environments and forecast market trends to make better investment choices, operating decisions, and competitive strategies. Managers use several indicators to assess an economic environment; meaningful indicators include growth rates, income distribution, inflation, unemployment, wages, productivity, debt, and the balance of payments. Managers improve economic analysis by identifying meaningful indicators and then understanding how they interact with each other. 2.What are the implications of the emergence of the BRICs for careers and companies in your country?

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