Meet the Brics

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The evolution of economy of BRIC is very impressive. They are in the speedy growth of their end user markets. (Experience indicates that consumer demand takes off when Gross National Income per capita reaches levels between $3,000 and $10,000 per year.) From 2000 to 2008, the BRIC countries' combined share of total world economic output rose from 16 to 22 percent. Together, the BRIC countries accounted for 30 percent of the increase in global output during the period. As BRICS observed as emerging market, many investors recognize the potentially attractive return characteristics and diversification benefits of this asset class. However, most pension plans and other institutions currently allocate less than 5% of their overall portfolio to emerging market equities. In Russia there is by now momentous verification of the growth of consumerism throughout the history decade. Parallel trends are observing in China and India, where middle classes growth is very quick. It is anticipated that within a decade, each of BRIC countries will demonstrate higher profits, amplified demand for capital, and stronger state currencies. As a result, overseas firms will desire to observe foremost financial pointers, as Purchasing Power Parity, Gross National Income and Human Development Index, in addition to developments in the cultural, political, and legal environments of those countries

The BRIC thesis posits that China and India will become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly
Dominant as suppliers of raw materials. It's important to note that the Goldman Sachs thesis isn't that these countries are a political alliance (like the European Union) or a formal trading association - but they have the potential to form a powerful economic bloc. BRIC is now also used as a more generic marketing term…...

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...1. Map the likely evolution of BRICs. What indicators might companies monitor to guide their investments and actions? BRICs란 2003년 미국의 증권회사인 골드먼삭스그룹 보고서에서 처음 등장한 용어로, 브라질(Brazil) · 러시아(Russia) · 인도(India) · 중국(China) 4국의 영문 머리 글자를 딴 것이다. 이들 나라는 1990년대 말부터 빠른 성장을 보이며 신흥경제국으로 주목받기 시작하였는데, 현재의 경제 성장 속도와 앞으로의 발전 가능성을 미루어 보았을 때 4개국의 성장 가능성이 가장 크다는 뜻에서 하나의 경제권으로 묶여진 개념이다. BRICs 4개국은 공통적으로 거대한 영토와 인구, 풍부한 지하자원 등 경제대국으로 성장할 수 있는 요인을 갖추고 있다. 4개국을 합치면 세계 인구의 40%가 훨씬 넘는 27억 명(중국 13억, 인도 11억, 브라질 1억 7000만, 러시아 1억 5000만)이나 된다. 따라서 막대한 내수시장이 형성될 수 있고, 노동력 역시 막강하다. 더불어, 지난 2000년 이후 이들 국가는 정치, 사회의 안정을 바탕으로 지속적으로 고성장세를 유지하고 있기 때문에, 골드먼삭스를 비롯한 국제전문기관에서는 BRICs 국가들이 미래에 세계 최대의 경제대국이 될 것이라 예상하고 있다. 이처럼 BRICs 국가들은 현재 가장 매력적인 시장으로써 경영자들의 이목을 끌고 있다. 하지만 그렇다고 해서 이 국가들에 무작정 진출해서는 안 될 일이다. 즉, 경영자들은 진출 이전, 이 국가들에 대한 여러 가지 요소들을 잘 파악해야 한다. 먼저 그들이 살펴봐야 할 것에는, GNI, GDP, Purchasing Power Parity, 부채, 소득분배, 인플레이션 등의 경제적 요소들이 있다. BRICs 국가들이 엄청난 경제 성장률을 보이고 있음에도 불구하고, 여전히 이 나라들에는 극빈곤층과 빈곤층이 대다수이며, 1인당 소득도 아직은 미국, 일본 등의 나라에 한참 뒤쳐진다. 따라서 단지 경제 성장률만 봐서는 안 되며, 여러 가지 다양한 요소들을 모두 고려한 후 진출을 결정해야 할 것이다. 더불어 그들은 정치, 문화, 사회적 요소들도 살펴보아야 한다. 사실, 이 나라들 중 대부분의 나라들은 최근에 와서야 민주주의를 채택한 나라들이며, 아직까지도 국가 내엔 사회주의와 공산주의 시스템이 남아있다. 게다가, 여전히 사회 기반 시설도 부족하며, 치안 문제도 존재한다. 즉, 여전히 이 국가들에는 정치적, 사회적 문제가 내재되어 있고, 이 문제들이 언제 기업에 영향을 미칠지 모르므로 경영자들은 이러한 위험들도 모두 고려하여야 한다. 2. What are the implications of the emergence of the BRICs for careers and companies in your country? 1993년부터 2007년까지 중국은 해마다 평균 10.5%의 성장률을...

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