Map the likely evolution of the BRICs.docx

英语国商1201班 陶梦瑶 杨柳青 刘儒浩 付俊鹏1. map the likely evolution of the brics. what indicators might companies monitor to guide their investments and organize their local market operations? the brics are in the market that develops in the high speed. the bric countries combined share of total world economic output rose from 16 to 22 percent, from 2000 to 2008. together, the bric countries accounted for 30 percent of the increase in global output during the period. as brics observed as emerging market, many investors recognize the potentially attractive return characteristics and diversification benefits of this asset class. however, most pension plans and other institutions currently allocate less than 5% of their overall portfolio to emerging market equities. in russia there is by now momentous verification of the growth of consumerism throughout the history decade. parallel trends are observing in china and india, where middle classes growth is very quick. it is anticipated that within a decade, each of bric countries will demonstrate higher profits, amplified demand for capital, and stronger state currencies. as a result, overseas firms will desire to observe foremost financial pointers, as purchasing power parity, gross national income and human development index, in addition to developments in the cultural, political, and legal environments of those countries.2. what are implications of the emergence of the brics for careers and companies in your country? the bric thesis posits that china and india will become the worlds dominant suppliers of manufactured goods and services while brazil and russia will become similarly dominant as suppliers of raw materials. its important to note that the goldman sachs thesis isnt that these countries are a political alliance (like the european union) or a formal trading association - but they have the potential to form a powerful economic bloc. bric is now also used as a more generic marketing term to refer to these four emerging economies. due to lower labor and production costs, many companies also cite bric as a source of foreign expansion opportunity. developing countries like us may face challenged and higher stresses in the labor market and the declining cost competitiveness of their countries companies. students from bangladesh may be encouraged because their states variety and compete for the investment capital and those business actions that lead to important monetary growth and the increasing international competitiveness of our countries firms. nevertheless, there is sufficient scope of comparative advantage in our country.3.do you think recency bias has led overestimating the potential of the brics? how would you as a manager for a company assessing these markets, try to control this bias? in principle, observe note the endemic problem of recency bias, which is the dubious expectation that the current trend will continue into the future. repeatedly, companies, executives, investors, and officials extrapolating the present into the future have made mistakes. here are a number of qualitative issues that investors must consider when contemplating an allocation to emerging market equities. one of the most decisive factors is liquidity, as plan sponsors may shy away from markets with lower volume and smaller market caps. many of these issues are incorporated in the classifications of msci emerging markets index, which consider economic development, size and liquidity requirements, and market accessibility. per msci, market accessibility integrates qualitative measures reflecting the investment experience of international investors in a given market, focusing on liberalization, level playing field, competitive landscape, information flow, and stability. in addition, emerging markets may involve a multitude of other political, social, legal and regulatory risks.4.how might managers interpret the potential for their product in a market that is, inabsolute economic terms, large but, on a per capita basis, we believe the best active managers may be able to identify opportunities in smaller markets, and build portfolios that are more diversified than the index. as such, manager selection is critical given the volatility in the asset class and wide dispersion of outcomes. in all,we believe institutional investors should consider establishing or increasing allocations to emerging market equities. managers might interpret the potential for their product in a market w. if there is innovation in the interaction with other firms and with knowledge infrastructure including universities and technological institutes .so that it can clarify the specialization, and competitiveness .growth performance can also go a long way.5.in the event that one bric country, if not all, fails to meet its projected performance,what would be some of the implications for the economic environment of internationalbusiness? macro stability, institutions, openness, education is the indicator of economic growth. if one of the bric country fails to meet the projected performance, the standard of bric countries performance will be hamper to some extent. as every country have microeconomic and macroeconomic environment. the elements of economic environment as gross national income(gni), per capita income, purchasing power parity, human development index will be hampered.so there can be inflation, unemployment, debt, inequality in income distribution, poverty and imbalance in payments. again maintenance of strong political institutions that endorse transparency, fairness, and the rule of law will not also possible. on the other hand openness to trade, capital flows, fdi cant be increased. if these economies can fulfill their potential for growth, they could become a dominant force in generating spending growth.6.compare and contrast the merits of gni per capita versus the idea of purchasing power parity, human development, and green economics as an indicator of economic potential in brazil, russia, china and india. the gni consists of the personal consumption expenditures, the gross private investment, the government consumption expenditures, the net income from assets abroad (net income receipts),and the gross exports of goods and services, after deducting two components: the gross imports of goods and services, and the indirect business taxes.the gni is similar to the gross national product (gnp), except that in measuring the gnp one does not deduct the indirect business taxes.in economics,purchasing power parity (ppp) asks how much money would be needed to purchase the same goods and services in two countries, and uses that to calculate an implicit foreign exchange rate. using that ppp rate, an amount of money thus has the same purchasing power in different countries. among other uses, ppp rates facilitate international comparisons of income, as market exchange rates are often volatile, are affected by political and financial factors that do not lead to immediate changes in income and tend to systematically understate the standard of l