Free Essay

Brics Countries

In: Business and Management

Submitted By annaklim
Words 2642
Pages 11
TABLE OF CONTENTS

1 INTRODUCTION ........................................................................... 3
1.1 INTRODUCTION AND STRUCTURE ................................................................ 3

2 MILITARY EXPENDITURES – BRIC COUNTRIES
2.1 BRASIL .......................................................................................................... 5
2.2 RUSSIA ......................................................................................................... 5
2.3 INDIA ............................................................................................................................................. 6
2.4 CHINA ........................................................................................................... 7

3 MILITARY EXPENDITURE - NATO ............................................................. 8
4 CONCLUSION ............................................................................................9
BIBLIOGRAPHY

10

3

1.1 INTRODUCTION AND STRUCTURE
The acronym BRIC summerize countries: Brazil, Russia, India and China. The BRIC countries are promising due to its huge population and the long-lasting economic growth, that’s why expectations of the market development are high. The inventor of the BRIC concept, Jim O'Neill, chief economist at the investment bank Goldman Sachs, published the study,, Dreaming with BRICs: The Path to 2050
" in 2003. His sensational report predicted:,, Over the next 50 years, Brazil, Russia, India and China
,the BRIC economies, could become a much larger force in the world economy”. O'Neill forecasts that already in 2040 the BRIC countries could achieve together a stronger economic power than the G6 countries USA, Japan, Germany, France, Great Britain and Italy. ( O`Neill, 2003, S.3 ff.)
After the dissolution of Soviet Union, the bipolar world is no longer existing. Since that time the military operations by the United States have been increasing. Since the beginning of 21th century, all the attention is paid to the BRIC countries, a new world order can be assumed - a multipolar world order. Are the BRIC countries just challenging just economically the Western world? The goal of this essay paper is to find out whether the BRIC countries represent military challenge to the Western countries. This essay paper will provide an overview of the activities of the BRIC countries and the Western countries regarding to their military weapons and equipment as well as defense budget. First the military expenditure is going to be analysed on the global level. Subsequently, we are going to take a closer look on the military expenditure of the individual BRIC countries and the Western countries.

The basis of the report the "SIPRI Military Expenditure Database". The database is based on publicly accessible information. In countries that don’t publish or provide any information about its military spending, SIPRI estimates the numbers on available sources such as international organizations or media reports. To the military expenditure of a country counts: staff costs for soldiers and civilian employees, the cost of equipment and property, the cost of military operations and missions as well as spending on military research and development aid. Since 1966 the Swedish International Peace
Research Institute SIPRI research to international conflicts, armaments, arms control and disarmament. The Institute is financed mainly by the Swedish State, but is independent from the state.
(bpb, 2014 )

As you can see in the SIPRI yearbook 2015, a report which appears annual, the global military expenditure is assumed to be around 1776 Billionen US-Dollar for the year 2014.

4
The global military expenditure are localy devided, as shown in the picture 1. Figure 1 shows, that military expenditure of central and west europe has decreased by 2 % in comparison to last year. As opposed to this the expenses in east europe are increased to 8,5%. Like in Western and Central
Europe, the situation is also in North America, where spending on armaments in 2014 decreased by
6,5 % compared to last year. A remarkably strong increase in expenditure can also be observed in
North Africa. The main reason for this is Algeria. This circumstance can be explained by the increased income from the export of oil. ( Antony, 2015, S.2 ff.)
Figure 1: Changes in military expenditure by region in precent( year 2013-2014)

Editored by the author. Source: SIPRI yearbook 2014
The data descended from the SIPRI. It must be said that this ranking "only" lists the absolute spending in dollars in the military. But it would be interesting to see the expenditure as a percentage of GDP. It is noticeable that, that all BRIC countries can be found in figure 3. Further on the United States spends with $ 711 billion about five times as much on the military issues as China. The United States that can be anticipated - is by far the largest military power in the world. Summed up military spending of all European states would come to a total of around $ 407 billion. From this perspective,
Europe's second largest military power. (Antony, 2015, S.2 ff.)

Following the current situation in term of armament of the individual BRIC countries is going to be discussed. Especially the focus is going to be on the military expenditure and development of military expenditure. 5

The data on military expenditure, which were used for many of the charts below, derived from the database of the Stockholm International Peace Research Institute SIPRI.

If there are no official data are available - the information from the SIPRI was estimated. This case applies to China, for example. China informs about the defense budget, but these are given far too low.
To explain the data needs to be noted that the years 2014 - 2015 were counted from SIPRI at the exchange rates of 2014. For better comparability of every year for all years SIPRI used the exchange rates of the year 2014.

2.1 BRASIL
In 2014 Brazil spend about 31,7 Billions USD. The level of military spending rose from 1981 to 1991 to more than double from 2.378 billion USD to 5.295 billion USD.( Tanania, 2014, S.130)
In 2010 Brazil spend 73 % of the defense budget for personnel expenses, mainly salaries and pensions. The remaining 27 percent was invested for example in the purchase of weapons. Similar to other countries in the region, Brazil invested especially in the modernization of the armed forces. The
National Defense Strategy of 2008 includes a plan to increase the military potential and revitalize the domestic defense industry. Important in this context, for example, is the contractual agreement with
France in 2009, in which it comes to the purchase of four Scorpene submarines and Brazil's first nuclear-powered submarine. In addition, it came to an agreement of the acquisition of 50 EC725
Super Cougar helicopters . The remarkable thing is that this should be made in the course of a technology transfer in Brazil. ( Han, 2010, )

In 2002 was started the program so called “FX-2 program” with the invitation to tender, to find a suitable product and a suitable corporation that manufactures aircraft in the course of a technology transfer in Brazil. It was said the winner of the tender would be announced in the year 2011. The cuts in the budget also delayed this about 5-6-billion dollar deal. (Kimla, 2013, S.19 )

Brazil has a huge regional importance and trying to gain international importance, both economically as well as militarily. During the years 2001 to 2010, GDP rose by 41 percent. The rapid economic recovery and political stability - Brazil is one of the most stable democracies in South America - the
Brazilian government always hope for a permanent seat in the UN Security Council. Brazil will

6 continue to invest in future in armor. The reason mainly the potential to be able to defend itself.
(Piehler, 2013, S. 253)

2.2 RUSSIA

In the year 2010 Russia overtook Great Britain and France and moved to third place in the list of countries with the highest military expenditure. (Freeman, Cooper, Ismail, Sköns, Solmirano, 2011 S.
8f.) In 2014 Russia spend a total of 84,5 billion USD for the equipment. According to SIPRI The increase in military spending goes mainly due to the efforts of Moscow to modernize its outdated arms industry. The further increase in the coming years is to be expected.

According to Putin, the Russian army will be unprecedented upgraded. Specifically provides his plan, that the armed forces will be modernized about 600 trillion rubles( 9 billions USD) in the next decade.
This modernization includes the purchase of 400 ICBMs, 600 combat aircraft, 2300 tanks and 20 submarines by the year 2020. By the year 2017 the Russian army will count one million soldiers.
According to Putin, this upgrade is necessary in order to respond to the planned missile defense system by the US and NATO (Tan, 2013)

It is clear that Russia tried everything to return its former (military) strength. After the collapse of the
Soviet Union, Russia had to accept a drastic reduction in the defense budget. Since Putin came to power, he tries to position Russia again as a force to be reckoned with. (Rukhavishnikov, 2013, S161179)
Another important reason for the investment in the Russian armed forces is closely linked to economic interests. Putin announced, that Russia is going to use its armed forces to defense the raw materials. In the near future Russia is going to deploy troops to the Arctic to secure there probable reserves of oil, gas and precious metals, which should be accessible by the global warming and the consequent melting of the ice. (Stalin, 2015 S. 24-26)

2.3 INDIA
The defense budget of India was 50 billion dollars in 2014.

7
Similar to China, India rose to a strong regional power thanks to the rapid economic development in recent years. India used to have traditionally close contact to Russia. In recent years, they dissociated and built a strong strategic partnership with the US, which also includes military cooperation. This partnership serves both countries. First, thus partnership creates a balance to China, which is getting more powerful. Second, India want to gain more acceptance worldwide by a cooperation with the US superpower. (Pilny, 2007, S.109-115)

Three trends can be identified regarding to the budgets of the Indian Army. Spending on equipment and infrastructure have increased by 37 % during the financial year 2003/2004 23 % during the financial year 2004/2005. Since then there has been a constant increase in this area by around 34 % every year. This expenditure was mainly invested in the modernization of the Indian armed forces, as they previously existed mainly from Soviet technology. In addition, the proportion of research and development of the entire military spending increased since the financial year 2001/2002 has increased fourfold with 1.3 % to 5.6 %in financial year 2010/2011. Especially the Indian defense industry should benefit from this investment. In addition to the areas mentioned above, the part of air forces was increased by the total expenditure. With the modernization of the Air Force, which involves mainly the purchase of new fighter aircraft, radar systems, satellites and drones, Indian army mainly showcases its power Pakistan and China. The increase of the military potential and the security and the information procurement are the chief purpose. Furthermore invested heavily in the Navy. The budget for this sector increased in recent years rapidly. (Mitra, 2010, S. 66-70)

In 2014 China spend 216 billion USD. In 2010, the official defense budget of China amounted approximately 78 billion USD. Estimated by the Stockholm International Peace Research Institute the real expenditure should have been about $ 119 billion in the defense sector in 2010. According to the annual report of the SIPRI China has invested in the following year $ 143 billion (according to exchange rates in 2011). China is now in second place of the countries with the most military spending, clearly behind the US. The global share of Chinise military spending amounts around 8 %

China tries to fill the technological gap for branches of military services. This is evident, for example, by the acquisition of technology for the development and construction of aircraft carrier. China has acquired the unfinished Russian aircraft carrier "Admiral Kuznetsov" and immediately rebuilt it afterwards. It can be assumed that this ship will strengthen decisively China`s combat effectiveness of the deep see fleet. The same applies to the aviation sector. In this production area, China has purchased the most modern combat aircraft manufactured in Russia and is developing them to their own priority. ( Pöcher, 2010)

8

China lost an important arms supplier since Ukraine crisis. Russia took the place of Ukraine and substitutes the deliveries. These imports have become progressively less and in the future China will try to boost its own arms industry and develop native arms. In spite of great efforts China still remains dependent on deliveries from Russia and Europe, especially by engines for military aircraft and hightech equipment. Another sector that increasingly invested in China is the navy. (Moritz, 2014)

3 MILITARY EXPENDITURE - NATO
It would take too much time to compare the military expenditure of every single Western countries.
For this reason it is appropriate at this point to illustrate on base of NATO military expenditure.
The North Atlantic Treaty Organization ( NATO) is an international organisation, composed of US,
Canada and number of european contries, established for purposes of collective security. None of
BRIC countries is member of NATO. ( thefreeonlinedictionary)

Figure 2 shows that NATO states reduce their spendings in military. USA spends 711 billion USD on military. It should be emphasizeid that the milityry spending declinded first time since 1998 in the year 2011. The reason for that must be the budgetdisput within congress or withdrawl oft he troops of
Irak and reduced army presence in Afghanistan.

Figure 2: NATO defence spending as a precentage of world defence espenditures

Editored by the author. Source: Worldbank 2012 – NATO calculations

In the US, military spending, fell by 6.5 percent to 610 billion USD in the year 2011. Since the highest level in 2010, the decline was 20 % annualy, In the European NATO countries declined spendings also. Since the Ukrainian crisis NATO strives to increase the military expenditures.

9

4 CONCLUSION
The aim of this essay paper was to illustrate the military expenditure of the BRIC staates and the states of the Western world.
All the BRIC countries have similarities. Each one is investing into the military equipment. The main aim of the countries is to modernise its arms equipment. Furthermore are the BRIC countries already the military leader in their region.
At the same time are NATO-countries reducing their investment into the armament. Ragarding to
Ukrainian conflict, which take place in Europe, there are growing expenditures on the part of NATO possible. Generally is it difficult to say wether are the BRIC countries going to pose a military danger to the old etablished powers. BRIC countries were recognized as extremly fast economically growing powers.
Based on growing population and economy BRIC countries should be recognized as a member in the world polics, with which ist o count.

10

BIBLIOGRAPHY
Bundeszentrale für politische Bildung. Militärausgaben: Der Westen spart, die Welt rüstet auf. 15
August 2015 http://www.bpb.de/politik/hintergrund-aktuell/182645/sipri-militaerausgaben-2013
Han, A.(2010). The Global Arms Trade: A Handbook. (1., Aufl.). Routledge
Freeman, Cooper, Ismail, Sköns, Solmirano, (2011).SIPRI yearbook. Armaments, disarmament and security. Kimla,D. (2013). Millitary - Offsets & In-Country Industrialisation Top 20 offsets markets. pdf.
Kleinwächter, K. (2015). NATO-Militärbudget im Widerstreit. 15. August 2015: http://www.heise.de/tp/artikel/44/44479/1.html Mitra,K (2010). Politics in India: Structure, Process and Policy
Moritz, R (2014). China profitiert von der Ukraine-Krise. 15 August 2015 : http://www.tagblatt.de/Home/nachrichten/wirtschaft/ueberregionale-wirtschaft_artikel,-ExperteMoritz-Rudolf-China-profitiert-von-der-Ukraine-Krise-_arid,258807.html O`Neill, J. (2003).Goldman Sachs Global economic paper. Dreaming with BRICs:The path to 2050,
(03)99.
Piehler, K. (2013).Encyclopedia of Military Science. SAGE Publications
Pilny, K (2007). Dance of the giants: India and China dominate the world.
Pöcher, K. (2010) Die europäische Rüstungsindustrie. Vom Weltmarktführer zum nachhinkenden
Konkurrenten..(10)316
15 Augst 2015: http://www.bundesheer.at/truppendienst/ausgaben/artikel.php?id=1036
Rukhavishnikov, V (2013). The military and society in post-communist Russia.. A comporative
Analysis.
Stalin, J. Russia's Arctic Strategies and the Future of the Far North. Routledge.
Tanania, R. (2014). Transition in Brasilien: Eine Analyse des politischen Systemwechsels.(1.,
Aufl.)Disserta.

11…...

Similar Documents

Premium Essay

The Brics

...The BRICs have developed exceptional growth in the last decade, rivaling the advance economies. The BRICs, coined by Goldman Sachs, consists of four countries: Brazil, Russia, India and China. These four countries are the fastest-growing markets in the world. The intensification of globalization has allowed these four markets to flourish. Even with the latest economic crisis, the BRICs are predicted to recover faster than the advance economies. By 2050, all the BRICs are forecast to past most advance economies. But, there are implications that hinder the BRICs full potential economic growth. There are distinctive factors for each of the BRICs that have helped gain influential economic power over the decades. The most influential and fastest growing market is China. China has been an isolated country both politically and economically in the world. It was not until the 1970s and 80s when China brought about economic reform. The main focus of these reforms was to change the economy away from the agriculture sector to international trade. These reforms allowed for China’s economy to flourish by opening its economy to the world for the purposes of trade and direct foreign investment. Since the liberalization of the economy, China has become the fourth largest economy with a growth rate of 9.5% over 26 years (Forbes). Its gross domestic product in 2009 was about $4.7 trillion (CIA). The second largest economic emerging country is India. India’s economy is controlled......

Words: 1267 - Pages: 6

Free Essay

Brics

...The Brics’ role in the global economy Paulo Roberto de Almeida In: Cebri-Icone-British Embassy in Brasília: Trade and International Negotiations for Journalists (Rio de Janeiro, 2009, p. 146-154; ISBN: 978-85-89534-05-5). ∗ 1. Where do they come from and what are the Brics? In demographic terms, BRIC holds the world’s two most populated countries and another two with considerable populations. China alone holds a fifth of the world’s population, and is closely followed by India (17.5%) and, by a larger gap Brazil (2.9%) and Russia (2.2%). Despite their large territories – Russia’s 17 million km2, India’s 3.2 million km2, China’s 9.3 million km2 and Brazil’s 8.5 million km2 –, the Brics differ from each other in terms of natural resources, level of industrialization and impact on the global economy. It is important to point out these differences, as definition as a bloc might lead to wrongful assumptions about the four countries’ individual current and future roles in the global economy. In order to be accurate about each country’s actual weight in the world, we should perhaps change the acronym to CIRB (but without the glamour of the name). Let us begin with China, which is the most continuous civilization in history – not strictly in terms of political linearity but rather in terms of cultural continuity. The country has a tragic contemporary history, marked by economic decadence, political instability, military humiliation and social regression caused by a deep......

Words: 3849 - Pages: 16

Premium Essay

Bric Countries Importance in Int'L Business

...The BRICs markets are both the fastest growing and largest emerging market economies. The countries of Brazil, Russia, India and China are becoming ever larger forces in the world economy. They account for almost three billion people, or just under half of the total population of the world. In recent times, they have also contributed to the majority of the world GDP growth. For some time their growth rates have been faster than those experienced in the western economies, and they have been able to withstand the recent economic crisis with greater resilience (Geoff, 2010). According to various economists’ projections, it is only a matter of time before China becomes the biggest economy in the world. China is expanding its reach all over the world. For instance, they are making in-road into most African countries which use to be a reserve place for the west, thereby stopping the monopoly that the western economies had in this part of the world. Most African nations with their leaders prefer to do business with China because of their poor ethical standard and the wiliness to do anything just to win the hearts of these leaders who are less concerned about the well-being of their people. In fact, Goldman Sachs believes that by 2050 these BRICs countries will be the most important economies in the world thereby relegating the US to fifth place (EconomyWatch, 2010). By 2020, economists’ project that all of the BRIC countries should be in the top 10 largest economies of the world.......

Words: 1409 - Pages: 6

Free Essay

Brics

...The BRICS economic success formula will continue to be imitated by aspiring economies in the developing world and particularly in Africa! The term ‘The BRICS’ was first quoted in Goldman Sachs report which was published in 2001, this term is an acronym for the emerging developing countries which are Brazil, Russia, India, China and South Africa (Wilson & Purushothaman, 2003, p. 2). In the last decade, these countries have been successful in the global economy and many developing countries across the world, predominately Africa are trying to emulate this success. The essay will show a brief overview of how successful the BRICS have become, once these reasons are established, the essay will focus on the core part of the question which is providing evidence showing how the developing world but in particular Africa are imitating the success of the BRICS. Finally the essay will finish with a conclusion which will summarise the main points which have been explained and discussed throughout the essay. The BRICS have been successful in the last decade, but forecasters believe that by 2050, the BRICs could become a very important source of new global spending and by the year 2032 Japan’s economy would become smaller that India’s and USA’s economy could shrink below China’s economy by the year 2041. If the BRICS combined their economies together, it would be larger than the G6 (Japan, United Kingdom, Germany, France, Italy, United States) by the 2039 (Wilson & Purushothaman, 2003, p....

Words: 1914 - Pages: 8

Free Essay

Brics

...BRICS BANK - A GLOBAL FINANCIAL INSTITUTION OPENING NEW OPPORTUNITIES FOR THE COUNTRIES AROUND THE WORLD INTRODUCTION 1. In late March 2013, the member countries of the BRICS (Brazil , Russia , India , China and South Africa) agreed to create a global financial institution which they intended to rival the western-dominated banks ( Like IMF and World Bank) by 2014.A new phenomenon has been injected in the tottering physique of the world financial order. It is the Fortaleza declaration of development banking and trade prospects by setting up Brics Bank. Leaders of Brazil, Russia, India, China and South Africa inked a deal, on 15 July in Fortaleza, Brazil, to launch a development bank with an initial $50 billion paid-up capital and a $100 billion monetary reserve. It is seen as a fruition of a multilateral financial diplomacy with the help of the multilateral mechanism and platform, without being cramped by Western pressure and dollar power. 2. In terms of economic function, this bank will provide long-term development aid to developing countries like Bangladesh. The monetary reserve will provide an economic stability fund to help BRICS countries respond to financial emergencies. BRICS Development Bank will help us to borrow cash for development projects, and to better cope with the risks created by international monetary system. 3. This paper will AIM 4. The aim of this paper is to.... BRICS AT A GLANCE 5. BRICS is the acronym for an association...

Words: 1105 - Pages: 5

Free Essay

Brics

... Accordingly please select your group so that each member can work on different dimensions of your research subject. Economic Issues related to the BRICS China: Facing the 21st Century China is without doubt currently the most dynamic force in Asia; it may be the most dynamic force in the world. Moreover, if China continues along its present trajectory, its growth will inevitably change the face of Asia. How did China do this? Where is China heading? What is happening in China? How did China do this? • What are economic strengths and challenges facing China today? • What is the impact of China's growth on other Asian countries? • What are the critical next steps for China in terms of its currency? What are their problems? India: Facing the 21st Century Some say we need to talk about “Chindia” as the new dynamic growth economy. India alone has shown growth of over 9 percent and is one of the fastest growing nations in Asia. • What are India’s economic strengths and challenges? • How did India achieve its growth? • Where is India heading with regards to China? • What is the impact of India's growth on other Asian countries? Brazil: Should it be part of BRICS? With slow growth and low saving to GDP ratio some question if Brazil should be included in the BRICS economies. But it is more developed than China or India. • What are some of the legacies of the Lula presidency that may shape Dilma presidency? ...

Words: 479 - Pages: 2

Premium Essay

Brics

...Brazil: Leading the BRICs? Brazil has experienced great integration into the global economy over the past decade, which has been a result of significant growth in exports and reinforcement of the country’s weight in international trade negotiations. Brazil is the third strongest economy of the BRIC group (Brazil, Russia, India and China) and is the leading economic power of the South America. Brazil’s president (Cardoso) initiated accession to the World Trade Organization (WTO) in the mid-1990s. Brazil plays an active role within the WTO and a constructive role in the development of economic and trade associations.   The accession of Brazil to WTO, its success in the organization and its important leadership position in the Group of Twenty, made it play a major role in the multilateral trade negotiations. Its position in favor of the Doha round brought about the realization of ambitions for development. Brazil’s actions in the World Trade Organization definitely serve the country’s long-term economic goals. The bilateral and regional trade agreements, promoted by Brazil, can complement the multilateral system by reinforcing the integration of the markets and strengthening the role of trade in economic growth. This is why Brazil should work through another round of WTO sponsored agreements. The WTO cotton dispute between Brazil and the United States reveals how some countries may strangle others by their strategic trade policy. It also shows the importance of......

Words: 732 - Pages: 3

Premium Essay

Bric Countries Research

...The BRICK countries have been attracting huge foreign direct investments in the recent past due to the peculiar nature of their economies. They are seen as emerging markets with huge economical growth and development that is experienced in any other economies. The major characteristics of the countries are the enormous consumer market comprising of large middle-income citizens and huge natural resources endowment. They also have sound financial institutions, excellent, efficient and modern communication, and transport and energy sectors. In addition, the economies have sound legal systems (Narayanamurthy Vijayakumar, 2010). According to (Khan, 2011) FDI is not only the financial component but covers other areas such as technology management, capital and market access. in their research (Philip, 2010) they found out that 1 percent of FDI in these countries resulted to about 0.07 percent increment in the countries’ GDP. The main impact of the FDI to the BRICK economies is as discussed below The investments received form foreign investors facilitate the country to venture into the global market. This is especially because the multinationals investing within these BRICK countries is able to produce goods in large scales for the global markets. This therefore enhances the countries to take advantage of globalization. Having firms that can produce for the international markets makes the country have favorable balance of trade, which makes the country......

Words: 833 - Pages: 4

Premium Essay

Brics

...Long-Term Outlook for the BRICs and N-11 Post Crisis The BRIC and N-11 countries are emerging from the crisis better than the developed world. As a result, our long-term projections for the BRICs look more, rather than less, likely to be realised. It is now possible that China will become as big as the US by 2027, and the BRICs as big as the G7 by 2032. Within the BRICs and N-11, China, Brazil, India, Indonesia and the Philippines appear to be performing best. Bangladesh, Egypt, Korea, Nigeria, Turkey and Vietnam form a second group of countries that have performed broadly in line with expectations. Iran, Mexico, Pakistan and Russia have need for improvement. We show the ongoing dramatic BRIC influence in key product markets, with autos and crude oil as examples. Important disclosures appear at the back of this document Thanks to Dominic Wilson, Michael Buchanan, Paulo Leme and Swarnali Ahmed for their valuable comments, and to Alex Kelston for the Growth Environment Scores Jim O’Neill and Anna Stupnytska December 4, 2009 Goldman Sachs Global Economics, Commodities and Strategy Research Global Economics Paper Contents Summary Section 1. Where We Stand on the BRICs and N-11 Section 2. The BRICs and N-11 in the Aftermath of the Crisis 2.1 BRICs and N-11 Global Importance Continues to Rise 3 4 6 6 Higher growth contribution Increasing trade shares Rebalancing current accounts Domestic demand and economic resilience 2.2 BRICs Market Performance in......

Words: 13484 - Pages: 54

Free Essay

Brics Countries

..... 3 2 MILITARY EXPENDITURES – BRIC COUNTRIES 2.1 BRASIL .......................................................................................................... 5 2.2 RUSSIA ......................................................................................................... 5 2.3 INDIA ............................................................................................................................................. 6 2.4 CHINA ........................................................................................................... 7 3 MILITARY EXPENDITURE - NATO ............................................................. 8 4 CONCLUSION ............................................................................................9 BIBLIOGRAPHY 10 3 1.1 INTRODUCTION AND STRUCTURE The acronym BRIC summerize countries: Brazil, Russia, India and China. The BRIC countries are promising due to its huge population and the long-lasting economic growth, that’s why expectations of the market development are high. The inventor of the BRIC concept, Jim O'Neill, chief economist at the investment bank Goldman Sachs, published the study,, Dreaming with BRICs: The Path to 2050 " in 2003. His sensational report predicted:,, Over the next 50 years, Brazil, Russia, India and China ,the BRIC economies, could become a much larger force in the world economy”. O'Neill forecasts that already in 2040 the BRIC countries could achieve together a stronger......

Words: 2642 - Pages: 11

Free Essay

Brics

...Faculty of Business Studies Module: Presentation and Communication Skills Examiner: Dipl. Ök. Marina Alvares-Wegner The BRIC countries Leslie Authier Matr. No.: 7007017 E-Mail: leslieauthier@orange.fr Diana Carolina Ramirez R. Matr. No.: 7004479 E-Mail: dianacarolina_puebla@yahoo.de Maya Höpfner Matr. No.: 7003768 E-Mail: maya.hoepfner@googlemail.com Table of content 1 Introduction...................................................................................................... 2 2 The Federative Republic of Brazil .................................................................... 3 2.1 General information on the Federative Republic of Brazil....................... 3 2.2 Brazil’s connection with the European Union.......................................... 4 2.3 Brazil’s financial situation........................................................................ 5 2.4 Brazil’s imports and exports.................................................................... 6 2.5 Brazil’s leading companies ..................................................................... 9 3 The Russian Federation................................................................................. 10 3.1 General information on the Russian Federation ................................... 10 3.2 Russia’s connection with the European Union...................................... 11 3.3 Russia’s financial situation.................................................................... 12 3.4 Russia’s......

Words: 6703 - Pages: 27

Free Essay

Brics Countries

...TABLE OF CONTENTS Definition of BRICS 2 A Brief History 2 BRICS Goals 3 First Declaration – Information Technology 3 Second Declaration – Industry Cooperation 4 Third Declaration – Agriculture 3 Reasons for Emergence of BRICS 5 Review of Economic Performance 6 Other Current Issues 7 References 9 Appendix 10 (BRICS Economic Data Table) _ DEFINITON OF BRICS A Brief History In 2001, Jim O’Neil – an economist at Goldman Sachs – first coined the term BRIC and ever since then it stood as an acronym for Brazil, Russia, India and China. At the time, O’Neil was trying to predict where Wall Street investors could place their investment dollars. In their search for future high growth and therefore high profits within a span of one to two decades, O’Neil came up with recommending the BRIC countries as potentially good nations where to park investment dollars. In that same year, he went on to predict that over the first decade of the twenty first century, the economies of those BRIC countries would increase in a very significant way; so much so, that it would “outpace growth of some of the world’s largest economies” (Sharma, 2012). In 2015 his prediction is presently valid, but mostly for China, which has achieved impressive economic growth in the last few years, and for India, which despite its ambivalent economic performance and socialistic labor tendencies, it has managed to post some notable levels of......

Words: 3555 - Pages: 15

Premium Essay

Bric

...economies, Brazil, India, China, Russia, Indonesia, economic growth Future of the BRICs Different options exist for companies to expand their markets globally. For example, companies may choose an exporting strategy, product licensing, or joint ventures. Alternatively, a company’s strategy may involve foreign direct investment (FDI) in another country by building a subsidiary from the ground up in the host country – a greenfield venture – or by acquiring an existing foreign entity. All globalization efforts present some risk. There are risks of encountering trade barriers with an exporting strategy and risk exists for either loss of the investment or lack of control over the foreign enterprises with FDI. For an individual company, there are pros and cons for each of these strategies in a particular country and the strategies have long-term economic, social, and political implications for the nations involved. The resulting interrelationships impact commerce and financial markets worldwide. Some companies and investors focus their global strategies on emerging markets where rapid growth might be anticipated. Convertibility of a selected market’s currency may be a potential problem especially for emerging markets. For example, the Russian ruble was not convertible into U.S. dollars until 2006. In addition, national governments may restrict currency exchanges in order to maintain monetary reserves for debt payments. In emerging markets without convertible......

Words: 353 - Pages: 2

Free Essay

Bric

...BRIC is an acronym standing for Brazil, Russia, India and China. Although can be categorized by importance of countries, it would be CIRB which is China, India, Russia and Brazil. The BRIC are both the fastest growing and largest emerging markets economies. These four countries encompass more than quarter of the world’s land area and in 2009 accounted for more than 40% of world’s population, 40% of the world’s foreign exchange reserves and 25% of world’s GDP. The states, which were earlier, accepted to consider as developing countries of Third world, promptly become economic giants of the new world. BRIC: Brazil, Russia, India and China – four markets everyone with the unique features, but thus unites them the potential generated by changes in political systems of these countries. As a result of these changes there was a consumer demand, which is formed by 43% of the population of the whole world. In roughly developing countries of BRIC there are five of the ten largest cities of planet where concentrated the huge amount of capital and millions of consumers who are aspiring up on social and economic ladder. The term BRIC was included into a business lexicon in 2003 after the economist of Goldman Sachs investment bank Jim O'Neill described future economic picture of the world. In his opinion, by 2050 the economic capacity of these four countries will allow them to become dominating economies, and to surpass in scales not only economy of the USA, but also economy of all of......

Words: 2479 - Pages: 10

Free Essay

Bric

...Institute of Professional Education and Research, Bhopal Business Environment Report on BRIC 2050 India performance and status Submitted To: Submitted By: Prof. (Dr.) Resham Chopra Bharat Naryani Priyank Ajmera BRIC BRIC are the acronym used to refer to the combination of the four biggest emerging-market countries: Brazil, Russia, India and China. According to Wikipedia BRIC (Brazil, Russia, India, and China) is a coalition of regional and superpowers reportedly proposed by Russian President Vladimir Putin. Predictions & Projections: Economists argued that, given sound political decision-making and good luck, the BRIC economies together could become larger than those of the world’s six most developed countries in less than 40 years. i.e BRIC economies of Brazil, Russia, India and China together would be larger than G6 (G7 excluding Canada) in USD in less than 40 years. Of the current G6, only the US and Japan may be among the six largest economies in US dollar terms in 2050. It is projected that  the Brics to account for close to 40 per cent of global GDP by 2050 and to have become four of the world’s top five economies. It is projected that the Brics’ rise in absolute terms will push them up to the top of the global leaderboard, in per capita GDP their performance will not be quite so impressive. Reasons why India will rise: 1) Manufacturing productivity will drive growth. It’s performance will improve due to globalisation and increased......

Words: 1522 - Pages: 7