DeWet Frans Petrus Louw
Bachelor of Commerce in Economics and International Trade
Bachelor of Commerce in Entrepreneurship and Business Management 22326103
Mini-dissertation submitted for the partial fulfilment of the requirements for the degree Bachelor of Science (Honours) in International Trade at the Potchefstroom Campus of the North-West University
Supervisor: Ms Carli Jacobs
2.1 Background and Motivation:
International trade is regarded one of the greatest generators of income in terms of GDP. It is also one of the main factors contributing to economic growth. International trade is an important factor to ensure a countries economic development and growth. The fact is that no country in the world is self sufficient (ITRISA, 2012: 5). Jim O’Neill, Chief Economist of Goldman Sachs initially thought of an idea to combine the largest developing and newly industrialised economies in the world, and so the idea of the BRIC nations was born. The acronym of BRIC was coined together by Jim O’Neill himself. The foreign ministers of the initial four BRIC states (Brazil, Russia, India, and China) met in New York City in September 2006, beginning a series of high-level meetings. A full-scale diplomatic meeting was held in Yekaterinburg, Russia, on May 16, 2008 and marked the birth of the BRIC nations. It was not until 2010 with the inclusion of South Africa as a BRIC nation to form the BRICS nations. These nations are regarded as the major developing and newly industrialised economies, but they are distinguished by their large, fast growing economies. “The BRICS are defenders and promoters of developing countries and a force for world peace” (Jintao, 2012). As of this year, the 5 BRICS nations represents over 40% of the global population, close...