Meet the Brics Case Study

Topics: Economics, Economy, Gross domestic product Pages: 6 (1876 words) Published: April 16, 2012
Map the proposed sequence of evolution of the economy of the BRICs.what indicates might companies monitor to guide their investments and organize their local market operations? Answer: China and India will be the dominant global suppliers of manufactured goods and services,respectively, while Brazil and Russia will become the principal suppliers of row materials. Collectively, on almost every scale, they will become the largest entity on the global stage. The unfolding influence of the BRICs as engines of new growth and spending power leads some to argue that these transitions may happen even sooner, especially given the aging working populations and falling productivity rates in richer nations. Experts’ forecasts that the most dramatic transition will take place over the next 20 to 30 years, BRICs will show higher returns, increased demand for capital, and stronger national currencies. Companies should monitor the, political, legal, and cultural factors and changes. 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 indicator that companies might monitor to guide their investments and actions is the futures of widespread poverty and distorted income distributions. With the exception of Russia, hundreds of millions of people in the BRICs will be poorer and each BRICs struggles with it particular problems. 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.

Question-2: What are the implications of the emergence of the BRICs for careers and companies in your country? Answer: The emergence of the BRICs effect on our country has some advantages and disadvantages, because it may create new career opportunities, more product options, and better price and/or quality for products because of competition. The emergence of the BRICs will challenge the well-being and sustainability of the global environment. Responses will vary according to the level of economic development and the economic basis of a student’s home country. Those students from industrialized nations may feel challenged and express the fear of a decline in their standards of living due to increased pressures in the labor market and the declining cost competitiveness of their countries’ firms. On the other hand, students from developing countries may be hopeful that their countries will be able to successfully generate and/or compete for the investment capital and those business activities that lead to significant economic growth and the increasing global competitiveness of their countries’ firms. How-ever, there is ample room for exceptions to these feelings, given the present and future comparative advantages of particular nations

But on the other hand it may affect negatively the domestic firms more over it may cause some kind of monopoly as the BRICs taking the lead....
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