BRIC Countries

While the fall in States and Japan static remains as an economic powerhouse, countries like brazil nut, Russia, India, and China, collectively k straightn as the BRIC countries, ar seemingly headed for that same route. According to a thesis published by Goldman Sachs Investment Bank, the preservation of these four countries be slowly improving and is likely to surpass the existing true countries in the world by 2050.Aside from these four, there are other emergent markets videlicet BRIMC (including Mexico), BRICS (with South Africa), BRICA (the four countries and Arab nations like Saudi Arabia, Kuwait, UAE, Qatar, and Bahrain), and BICET( with Eastern Europe as well as Turkey)(Prado, 2008). The Global Outlook Jim ONeill, who was the economist who proposed the thesis, forecasted that cause 2050, the BRIC countries would beat constituted to a greater ex hug drugt than 39 percent of world existence and gene investd a collective GDP of $15.43 trillion. At present, they only ac count for 15 percent of the worlds gross national product (GNP) compared to that of the sixer industrialized economies of the US, Germany, Japan, France, Italy, and Britain. However, it is predicted that disdain their growing population, the BRIC countries would overtake these countries and be pay back the leading countries as far as increasing growth and spending ability is concerned(Prado, 2008). BRIC Countries 4Although non regarded as a political alliance (like the EU) or formal job blocs such as the ASEAN, the BRIC countries commit made great strides in alter their cooperation, in order to influence the stand of the fall in States on study trade treaties, such as the proposed nu piddle union with India(Prado, 2008). Despite of their heathenish and political variations, the BRIC countries have shifted their political system in order to be globally competitive in a capitalist world(Prado, 2008). A bet on Goldman Sachs Report In 2004, Goldman Sachs published a follow-up to its first BRIC research.In the guerilla report, it was found out that people who have a yearly in settle of more than the $3,000 threshold exit be twice as much in a span of three years and 800 million in ten years. This shows that there is huge increase in the amount of middle screen in these states. By 2025, according to the second report, the number of people with an income of more than $15,000 would surpass the 200 million mark(Prado, 2008). However, the follow-up report likewise indicated that despite the shift in the economic growth, the average income in developed countries will remain higher compared to those in the BRIC countries(Prado, 2008).Responding To The Development A report released by PriceWaterhouse Coopers believes that investors must right off set their sights on the BRIC countries as it presents a bright future for growth potentials. Economic growth has shifted from the linked States and Europe to emerging countries BRIC Countries 5 like China and Ind ia. This was based from an observation by toilette Hawskworth, chief of the macroeconomics division of PricewaterhouseCoopers(Gorringe, 2008). According to forecasts, China would emerge as the biggest thrift by 2025 replacing the United States and sustain their growth to 130% come 2050.Similarly, the prudence of India would surpass that of the US by 90% in 2050. Brazil will move to number four dislodging Japan. Russia, along with Mexico and Indonesia, may acquire larger than the economy of Germany and the United Kingdom(Gorringe, 2008). It is worth mentioning that other emerging economies have been included in the list of Pricewaterhouse Coopers as potential growth areas. Among them are Vietnam, Nigeria, Bangladesh, Egypt, Philippines, and Turkey. Vietnam, in particular, has shown tremendous economic growth at 10% per annum.Come 2050, its economy would be 70% larger than the United Kingdom(Gorringe, 2008). Among the BRIC countries, China and India have shown the near significan t improvement in terms of their economy. Although their population is over 1 billion, Chinese and Indian economy have grown rapidly. For China, the growth rate is at 10 percent per annum since 1980. India, for its part, registered a 9% growth in its economy in 2006. The combined output of the two countries went up from 6. 7% to 21. 3% from 1980 to 2005.According to predictions, world economy will be focused on China in the year 2015 and India by 2030(Gorringe, 2008). BRIC Countries 6 Over the years, the United States have become the major trading partner of both developed and developing countries. However, this is no longer the case, as many countries have now realized the potential that the BRIC countries have as a region of growth. For instance, the United States have long henpecked the scrap market industry, but now China has become a major competitor in the diligence and distribution of recyclable materials.India, likewise, is a new alternative as far as the scrap market is con cerned(Sandoval, 2005). On the other hand, Russia and Brazil have become a major source of raw materials. The significance of the BRIC partnership is that China and India can source their raw materials from Russia and Brazil(Prado, 2008). Although the economy of Brazil is still dependent on the United States, its local currency is doing well. In fact, during the past tense years, it has outperformed even the Euro(Mason, 2008). Conclusion Gone are the days when the United States dominated world economy.With emerging economies such as the BRIC, the time will come when the playing field as far as global economy is concerned will become level, with each country having their own dowery of economic growth. Pretty soon, the United States will eventually have to agree how to trade with other countries all over again. The emergence of the BRIC countries is a clear sign that potential growth is no longer concentrated on developed countries and that the balance of economy is veering away to wards developing nations foreign of North America and Europe.BRIC Countries 7 References Bustelo, P. The Economic Rise of China and India and its Implications for Spain. unfeigned Instituto Elcano. 2007 August 8. Retrieved June 30 2008 from http//www. realinstitutoelcano. org/wps/portal/rielcano_in/Content? WCM_GLOBAL_CONTEXT=/Elcano_in/Zonas_in/DT+31-2007 Gorringe, J. Investors Should Look Beyond BRIC Countries, Says PwC. impartiality and Tax-News. com. 2008 March 10. Retrieved from http//www. lawandtax-news. com/asp/story. asp? storyname=30242 Mason, J. BRIC Is For Real. Seeking Alpha.2008 May 19. Retrieved June 30 2008 from http//seekingalpha. com/ term/77727-bric-is-for-real Prado, T. The BRIC Thesis. What About Brazil. com. 2008 March 20. Retrieved June 30 2008 from http//www. whataboutbrazil. com/the-bric-thesis/ Sandoval, D. Shrinking World The Growth of the BRIC Countries Is do The World A Smaller Place(Brazil, Russia, India, and China). 2005 September 1. Retrieved June 30 2008 from http//goliath. ecnext. com/coms2/gi_0199-4753169/Shrinking-world-the-growth-of. html