HISTORY OF GLOBALIZATION---BRIC
AGENDA
History of globalization
Why BRIC
Analysis on Historical timeline, Economic growth, Trade
―India ―Russia―China―Brazil
Future of BRIC
Interdependencies
Conclusion
Why BRIC
ExplanationOver twenty-five percent of the world's land coverage
Forty percent of the world's population
Hold a combined GDP of 15.435 trillion dollars.
Are among the biggest and fastest growing Emerging Markets.
Fast growing economies with the biggest source of labour.
In 2005 the emerging economies overcome developed economies by their share in the World GDP calculated at purchasing power parity.
Historical Timeline
Brazil
Russia
Historical Timeline
India
China
Brazil: 1994 Brazil came out of recession Growth at 3% annually Challenges to more rapid income growth in` Brazil.
Russia: After the economic collapse of 1998, Russia experienced strong growth A devalued ruble and high world oil prices helped boost Russian economic
growth
India: Increasing service exports and foreign investment - India’s engines of
economic growth An increasing focus on education and literacy boosted India’s productive
capacity.
China: Comprehensive reforms in the financial and corporate sectors aided
China’s rapid economic growth rates. Industrial exports and greater monetary transparency—which has
encouraged foreign investment—are driving China’s economic expansion.
Recent Income Change in BRIC
Economic Growth-GDP Trend
Economic Growth-Analysis
Despite efforts from the government to impose economic reform, GDP growth has remained low;
Brazil’s challenge will be to boost growth during the current decade.
Brazil Petroleum exports are Russia’s main engine of economic growth; high world oil prices, improved consumer confidence, and domestic demand boost economic growth
Greater tax compliance has increased government revenue; effective fiscal policy has promoted macroeconomic stabilization and long-term growth
Russia
Increasing expansion of the services sector and growth in foreign direct investment are India’s main engines of economic expansion.
Increasing literacy rates and education achievement help explain increasing productivity and GDP growth.
India
The majority of China’s growth is fueled by external trade and FDI.The Chinese industrial sector is experiencing increases in productivity.
Productivity increases (and consequent output increases) are themain factor leading to high growth rates
The expanding private sector helps boost the Chinese economy
China
Global Trade partners
US -17%, Argentina 7.2%, Netherlands 3.8%
China 5.0%
Global Trade partners
Netherlands -10.1%, Italy 7.8%,
Germany 8.1%China 5.4%
Net Goods Trade- $35606
Net Services Trade- ($13730)
Net Goods Trade- $99434Net Services Trade-
($14357)
Brazil RussiaTrade
Global Trade Partners US-10.1%,
Hongkong- 7.8%, Japan- 8.1%
South Korea- 5.4%
Global Trade Partners US -17%,
UAE-8.3%, China- 7.7%
UK- 4.3%
Net Goods Trade- ($99503)
Net Services Trade- $44607
Net Goods Trade- $303333
Net Services Trade- ($15480)
ChinaIndiaTrade
Interdependency
Due to strong overall macroeconomic fundamentals in BRIC, there will be
substantial flows of foreign investment boosting potentials for the future
output growth.
The BRICs are likely to maintain their comparative advantages in the long term. This will help to ensure relatively high growth rates and therefore increasing share of these economies in the world market.
Conclusion
Country Reason for growth
Brazil Increase in demand for its base materials such as iron ore
Russia Huge oil and gas reserves, and profiting from the global shortage of energy sources.
India Global outsourcing trend , FDI
China Industrial and Manufacturing might
According to Goldman Sachs, the world’s largest economy in 2050 will be China which is expected to be almost 30% larger than the US
US will be the world’s second largest economy by then.
However other Asian nations are more significant than Russia and Brazil combined.
Also sustainability of high growth will depend on the several crucial factors:
Sound and stable macroeconomic and development policies.
Development of strong and capable institutions (including political).
Human development (improved healthcare and education).
Name PRN
Amit Mewada 07030241003
Gunindar Pal Singh 07030241008
Kapil Vidhani 07030241011
Ravi Manvatkar 07030241025
Satyajeet Darak 07030241030
Prasad Ghatekar 07030241042
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