BRIC Country Assessment AnalysisBRIC refers to Brazil, Russia, India and China. The term BRIC was created bythe Chief Economist of Goldman Sachs Investment Bank in 2001 and is nowwidely used in...

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BRIC Country Assessment AnalysisBRIC refers to Brazil, Russia, India and China. The term BRIC was created bythe Chief Economist of Goldman Sachs Investment Bank in 2001 and is nowwidely used in business and academia to refer to the four countries that arelikely to have a profound impact on the global economy and businessenvironment in the twenty first century. As part of the globalization theme ofthis Strategy Seminar we want you to become familiar with these countriesand their potential role in corporate global business strategy.• For a more recent commentary on the BRIC countries view thefollowing: Goldman Sachs | BRICs Videos and StoriesExamine each of the BRIC countries to determine their projected economicgrowth, country business environment and country risk. We have gatheredassessments of the Country Risk and Business Environment (Opportunity)from the Economist Intelligence Unit database in the UMUC library. Theseassessments are posted as EIU BRIC Country Assessment Ratings in CourseContent.BRIC COUNTRIESBRAZILEconomistIntelligenceUnit,Brazil Economy,Politics and GDPGrowth SummaryCHINAEconomist IntelligenceUnit,China Economy,Politics and GDPGrowth SummaryRUSSIAEconomistIntelligenceUnit,RussiaEconomy, Politicsand GDP GrowthSummaryINDIAEconomist IntelligenceUnit,India Economy,Politics and GDPGrowth SummaryMAN 6726 : Strate gic Ma na geme nt Pg. 12 Corporate MBA Read the rationale behind these ratings and dig deeper by reading other EIUnews stories about the political, economic, financial, business and regulatoryenvironments in each country.Also, take note of the Personal Disposable Income (PDI) available in eachcountry as an indicator of market size. (you will find the PDI in the 5 YearEconomic Forecast) , PDI is defined as the income households receive fromfirms, plus transfer payments received from the government, minus directtaxes paid to the government. It is the income that households have availablefor spending or saving.Post the resultant ratings for each country in a summary table comparing thecountry ratings for risk, business environment (opportunity). Add the UnitedStates to the table for comparison purposes. Include a brief summary of themain country conditions that contribute to the ratings.Also create a table comparing the Gross Domestic Product (GDP), thePersonal Disposable Income (PDI), Exports (in U.S. $), and Imports (in U.S.$) for both 2011 and 2015 and calculate the amount of growth for each item.Discuss the following business strategy questions.• How would you tradeoff the degree of country risk versus the businessenvironment ratings, taking into consideration the market size asexpressed by the PDI in 2015?• How would you tradeoff the degree of country risk versus the businessenvironment ratings, taking into consideration the market growth asexpressed by the PDI in 2015 versus 2010?• As a result of answering the above two questions, how would youprioritize the BRIC countries in terms of developing a global businessstrategy?Note: Write this up, integrating your answers in a way that demonstrates yourcritical reasoning supporting your prioritization of the BRIC countries.
Answered Same DayDec 21, 2021

Answer To: BRIC Country Assessment AnalysisBRIC refers to Brazil, Russia, India and China. The term BRIC was...

Robert answered on Dec 21 2021
122 Votes
BRIC ECONOMIES-
2012



Student Name

BRIC COUNTRY ASSESSMENT
ANALYSIS
Current economic situation of BRIC economies, and their long term performance
Table of Contents
BRIC economies – the growth seems cooling down .............................................................. 3
India – the growth seems cooling down .................................................................................
7
Political Situation in India ..................................................................................................... 7
Service sector to remain the major contributor of Indian GDP ............................................ 7
Domestic consumption could drive the growth ...................................................................... 8
China – short term growth story intact, but property sector heating................................. 8
Property sector over heated, bubble burst on the card .......................................................... 9
Money flowing out of the Chinese economy ........................................................................... 9
Brazil – Growth slowing .......................................................................................................... 9
Higher tax rates and overvalued currency ........................................................................... 10
Overdependence on Commodity........................................................................................... 10
Russia – Stable and lower long term growth ....................................................................... 10
Inflation rate cooling ............................................................................................................ 11
Over-reliance on oil to hit the economy ............................................................................... 11
BRIC economies – the growth seems cooling down
Growing uncertainty across the globe and reducing investor’s confidence is making it really
difficult for BRIC nations – Brazil, Russia, India and China, to continue their growth story
forward. While China’s is expected to grow at close to its 2004 growth levels, India faces a
severe risk of cut in its investment grade rating (announced by S&P in June 2012). Even
Brazil that ranks much higher in the business environment index is also facing the heat.
Brazil is expected to grow at close to 3% for the second consecutive year, while decreasing
oil prices can have a significant impact on the Russian economy.
Country Assessment: US and the BRIC nations
*bubble size represents PDI in USD billion (2015)

Now if we look at the statistics of all the BRIC countries we can find that Brazil is most
attractive as far as business environment is concerned and looks to be less risky country with
a country risk rating of 41.7. China with a huge PDI size of $5,855 billion, and impressive
business environmental also looks a favourable economy. Over all Brazil and China Looks
out to be more attractive based on the business environment, country risk and the market size.
Thus based on the market size, these are the two best destinations for investors.
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Risk Rating (0-low and 100- High)
USA Brazil Russia India China
Country Assessment: US and the BRIC nations
*bubble size represents growth in PDI (2015)
Now if we look at the statistics of all the BRIC countries in the above chart, we can find that
India and China look to be an attractive destination for the investors with higher growth in
PDI and comparatively manageable risks and good business environment. Thus if we
consider using the PDI growth, then both China and India look attractive.
Table 1.1: GDP (2011 Vs 2015) in USD billion
Country GDP (2011) GDP (2015) Growth Growth (%)
USA 15094 17,817 2723 18%
Brazil 2474 3050 576 23%
Russia 1858 2625 767 41%
India 1887 3388 1501 80%
China 7049 12369 5320 75%
BRIC Total 13268 21432 8164 62%
Table 1.2: Personal Disposable Income (2011 Vs 2015) in USD billion
Country PDI (2011) PDI (2015) Growth...
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