BRIC Emerging Markets - Essay Example

Comments (0) Cite this document
Summary
BRIC is the acronym used when examining the economic activities of the Brazil, Russia, India, and China. Aside from having 40% of the world's population, the combination of these four countries accounts for more than one-fourth of the world's land area (Raiffeisen Centrobank, 2009).
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.3% of users find it useful
BRIC Emerging Markets
Read TextPreview

Extract of sample "BRIC Emerging Markets"

Download file to see previous pages In line with this, Lopez-Claros (2005) explains that the competitiveness of each nation to compete in the world market is not limited to their ability to maintan exchange rate competitiveness but also the importance of improving their productivitity in order to increase the businesses' return on investment and also improve the aggregate growth among the four countries' economy.
As part of increasing the BRICs competitiveness against other countries around the world, enhancing one's knowledge on economic development could empower each nation to positively act upon the challenges associated with the challenges related to FDI and trade, political stability and sustainability in each nation (Lopez-Claros, 2005; Henisz, 2000; Olson, 1996; Bhagwati, 1989).
Globalization strongly promotes the practice of free trading around the world. In line with this, balancing the volume of local and foreign trade activities is crucial in terms of maintaining a strong economic growth because allowing the import level of foreign goods to exceed the export level within a country is harmful in terms of the country's economic development (Bhagwati, 1989).
Given that a country becomes very dependent on the importation of goods and services, it is likely that the country would experience slow growth and unemployment problem because of the significant decline in the demand for locally manufactured and provided goods and services (Bhagwati, 1989). A great imbalance between the import and export is enough to cause the sudden decrease in the countries' gross domestic product (GDP). (Campos & Coricelli, 2002; Boix, 1999)
Political Stability
The socio-political stability of Brazil, Russia, India, and China could significantly affect the economic development of each nation (Henisz, 2000) In line with this, several past research studies revealed that the governemnt's ability not to interfere with the private property rights of the businessmen is necessary in terms of maintaining the long-term capital investments necessary to enable the BRICs to experience a rapid economic growth (Henisz, 2000; Olson, 1996).
Equally important for the continuous economic growth of BRICs, the government in each nation should develop and implement effective stabilization programs related to taxation, business regulation, and other relevant economic policies that could promote the increase in private investment (Henisz, 2000) aside from intervening on global trade activities like imposing import restrictions and providing export subsidies among others (Bhagwati, 1989). Whenever a new foreign business would enter the country, the government shuld impose a strict entry regulation in order to prevent the incidence of fly-by-night business operators (Djankov et al., 2002).
With regards to tax policy, collected tax revenue should be invested in economic activities including the development of infrastructure, improvement in educational services, and investment on new technology in order to create new job opportunity and demand for the local products and services (Lopez-Claros, 2005). All these can be easily achieve ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“BRIC Emerging Markets Essay Example | Topics and Well Written Essays - 3250 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1511312-bric-emerging-markets
(BRIC Emerging Markets Essay Example | Topics and Well Written Essays - 3250 Words)
https://studentshare.org/miscellaneous/1511312-bric-emerging-markets.
“BRIC Emerging Markets Essay Example | Topics and Well Written Essays - 3250 Words”, n.d. https://studentshare.org/miscellaneous/1511312-bric-emerging-markets.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF BRIC Emerging Markets

Emerging Markets Economies

...?LESSONS FROM EMERGING MARKET ECONOMIES Emerging markets are defined as economies whose trade or business activities are experiencing rapid expansion and growth. Rousseau and Sylla (2001) add that emerging markets are characterized by rapid growth of industries. To achieve and maintain rapid growth of trade and the economy, emerging markets must therefore consider to importance of financial systems are prerequisites for economic growth. This is because banking institutions, securities and sound regulation of the financial system by a national or central bank are economic requirements which catalyze trade and thus propel the rate of economic growth. This paper is based on the writings of Rousseau and Sylla on financial institutions... and...
6 Pages(1500 words)Essay

Emerging markets

...Emerging Markets Emerging markets are becoming the fastest drivers of global development. These markets are expected to grow twice or thrice the number of developed countries like the United States. The public investor continues to underweight these developing markets in their collections. Corporate profits seem to grow rapidly when there is a higher economic growth. One of the reasons why developed markets like the U.S have been ranked high is because of the development of markets outside the country. Some nations are borrowing a leaf from the U.S and are performing well as emerging...
4 Pages(1000 words)Essay

Emerging markets

...Market Countries, Oxford University Press, United Kingdom. Beausang, F, 2012, Globalization and the BRICs: Why the BRICs Will Not Rule the World For Long, Palgrave Macmillan, Great Britain. Calomiris, C, W, 2013, China's Financial Transition at a Crossroads, Columbia University Press, New York. Cavusgil, S., Ghauri, N., Agarwal,R 2002, Doing Business in Emerging Markets-Entry and Negotiation Strategies, Sage Publication, London, Poillon. Chen, C, 2011, Foreign Direct Investment in China: Location Determinants, Investor Behaviour and Economic Impact, Edward Elgar Publishing, UK. Goldstein, I and Razin, A, ‘An information-based trade off between foreign...
11 Pages(2750 words)Essay

Comparison of the four bric emerging markets. Brazil, Russia, India and China

...? COMPARISON OF THE FOUR BRIC EMERGING MARKETS COMPARISON OF THE FOUR BRIC EMERGING MARKETS Emerging markets are indeed becoming points of focal call for most global expansion agenda for various multinational companies. This is largely due to the potentials that each of them uniquely possess. A major component of emerging markets is the four BRIC emerging markets represented by Brazil, Russia, India and China. This paper identifies the unique properties of each of the markets and makes a conclusion on the...
3 Pages(750 words)Assignment

Emerging Markets Finance

...mesuring downwrd pressure on the exchnge rte (in liner fshion). Bibliography: Mishkin, F. (1996) 'Understanding financial crises: a developing country's perspective', NBER Working Paper 5600. National Bureau of Economic Research, Cambridge, MA. McKinnon, R. and Pill, H. (1999) 'Exchange rate regimes for emerging markets: moral hazard and international overborrowing', Oxford Review of Economic Policy, 15(3): 19-38. Obstfeld, M. (1996) 'Models of currency crises with self-fulfilling features', European Economic Review, 40: 1037-1047. Morris, Stephen and Shin, Hyun Song (1998) 'Unique equilibrium in a model of self-fulfilling attacks', American Economic Review, 88(3): 587-597. Demirg-Kunt, A....
13 Pages(3250 words)Essay

Business in Emerging Markets

...Business In Emerging Markets The emerging markets (EMs) are now the world’s booming markets. Emerging markets comprise of 75 percent of the world’s population and more than 20 percent of the world’s Gross Domestic Product (GDP). The emerging markets epitomizes a diverse set of economies and societies and are quite useful and important for testing the existing theories, models and concepts of international business and management. The emerging markets of Brazil, Russia, and South Africa (BRICS) stand out as significantly attractive...
10 Pages(2500 words)Essay

Business in emerging markets

...Business in emerging markets TABLE OF CONTENTS Page No. Executive Summary…………………………………………………………… 2 Introduction …………………………………………………………………… 2 Discussion…………………………………………………………………….. 3 1. Porters 5 framework of analysis…………………………………………. 3 a. Supplier power………………………………………………………… 3 b. Barriers to entry………………………………………………………. 4 c. Rivalry ……………………………………………………………….. 4 Structure of competition……………………………………………… 5 Degree of country differentiation…………………………………….. 5 d. Threat of substitutes…………………………………………………… 8 2. PEST framework of analysis……………………………………………… 10 a. Political………………………………………………………………. 10 b. Economic factors……………………………………………………… 11 c. Environment…………………………………………………………… 11 d....
12 Pages(3000 words)Essay

Emerging Markets

...Emerging Markets in the United s Introduction With the vast variety of markets existing in the world, there is a lot of competition for those marketers who try promoting new products thereby giving the world the concept of an emerging market. Markets are determined by their extent and demand. The extent of a market may be defined by geographical boundaries or by the cost involved in transporting the goods to far reaching areas. The demand of a market, on the other hand, is determined by factors such as fashions and trends, affordability and the availability of substitute and complement...
8 Pages(2000 words)Essay

Emerging Markets

...Emerging Markets in Mexico Introduction With the vast variety of markets existing in the world, there is a lot of competition for those marketers whotry promoting new products thereby giving the world the concept of an emerging market. Markets are determined by their extent and demand. The extent of a market may be defined by geographical boundaries or by the cost involved in transporting the goods to far reaching areas. The demand of a market, on the other hand, is determined by factors such as fashions and trends, affordability and the availability of substitute and complement goods....
8 Pages(2000 words)Essay

EMERGING MARKETS

...EMERGING MARKETS Comparing India and China over the Last 20 Years In Terms Of Their Economic and Financial Reforms From research, both China and India`s governments decided to mobilize domestic savings and channel them into industrial development after taking power. Government possession and involvement was the means to that end (Allen 2005). The planners in China eradicated private possessions and institutions when they took over the financial system. Therefore, recreating financial markets and market-based institutions has been a work in progress. On the other hand, the leaders in India chose a mixed economy after independence from Britain. Markets...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic BRIC Emerging Markets for FREE!

Contact Us