HISTORY OF GLOBALIZATION---BRIC. AGENDA History of globalization Why BRIC Analysis on Historical timeline, Economic growth, Trade ― India ― Russia.

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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