Meet the Brics

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[pic] [pic] MBA 748 International Business Dr. Ma’n Al nsour Case study (Meet the BRICs) Prepared by Wesam Ennab Nov. 2012 Origin and Evolution of BRICS: The BRIC stands for Brazil, Russia, India and China. The term was first conceived in 2001 by Goldman Sachs as part of an economic modeling exercise to forecast global economic trends over the next half century; in their Global Economics Paper No. 66, "The World Needs Better Economic BRICs". In 2012 BRIC expanded into BRICS to include South Africa because of its growing significance in the global economy. The case answers: 1. Map the proposed sequence of the evolution of the economy of the BRIC’s. What Indicators might companies monitor to guide their investments and organize their local market operations? Answer: The BRICS account for about40 percent of the world’s population, nearly 30 per cent of the land mass, 18 percent of the world’s economic aggregate, 15 percent of international trade and attract 53 percent of the foreign capital, and a share in world GDP (in PPP terms) that increased from 16 per cent in 2000 to nearly 25 per cent in 2010 and is expected to rise significantly in the near future. [pic] BRIC economies have built up strong consumer demand, which could take the lead as the prime engine for growth. The rise of the middle class in China, India, and Brazil is having a clear impact on consumption patterns, providing more opportunities for consumer-oriented multinational corporations to increase their revenues and profitability. As more Chinese and Indian families enter the ranks of the upper-middle class, status-related spending behavior may become more widespread and could further alter the composition of global consumer markets .It is expected that within a
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