Impact of Bric Countries on the Global Economy Essay

Looking forward to 2016 focusing in the BRIC group of countries, what impaction lead they have on the world economy? (30 marks) The BRIC group of countries consists of Brazil, Russia, India and mainland China. BRIC describes the exploitation power and influence of the emerging markets of these countries in the globose economy. In fresh years, all four BRIC countries have experienced rapid sparing growth, peculiarly China. The BRIC countries were predicted to account for 37% of global growth between 2011 and 2016 and this will maturation their sh ar of global output to 23%.On the other hand, the correspondence of the G7 economies global output is forecasted to fall from 48% to 44% over the uniform period of time. This data suggests that the growth of the BRIC economies is having a negative impact on the major economies. Manufacturing in the Europe and North America has been slumping in late years due to the increasing price of raw materials and labour. People are being rep laced with high-tech engineering hence there are fewer jobs.As a gist of this, a lot of manufacturing is being locomote to the BRIC countries where labour costs are raw materials are cheap. This is having an adverse encumbrance on countries such as the UK. For instance, the UK car manufacturing industry cannot compete with China in terms of prices and output, hence leading to a decline in the industry. The buying power of consumers in the BRIC countries has improved as their economies have grown. authorization has also increased within businesses and consumers, leading to more economic activity.As a result of this there have been more opportunities for other countries to exporting their goods to the BRIC countries. In addition, many brands and stores are expanding into these countries to fill gaps in not that occupied in the emerging markets. The expansion opportunities for businesses in the BRICs will incite growth in the global economy. However, the gaps in the emerging m arkets are being filled rapidly by multi-national companies thereof these opportunities will be few or gone in the coming years.The BRIC countries are manufacturing based thence they rely heavily on raw materials. As a result of this there has been a lot of coronation in other countries to bushel natural resources. For instance, China invested a lot in African nations where it is occupation cash for oil drilling rights. These trade deals should lead to improved economic conditions in Africa and other countries. Stock markets in the BRIC countries are emerging ones therefore they tend to give higher returns compared to developed markets around the world.Data shows that in 2010, Russia & India stock markets performed better than all other markets Russia gave returns of about 21% go Japan gave negative returns of about -3%. This would most likely result in investors shifting from developed economies to the emerging economies of the BRIC countries. As a consequence, other countrie s could retrieve a slower economic growth. However, the stock markets fluctuates frequently hence investors will invest based on a short term evaluation.Finally, look forward to 2016 I think the BRIC group of countries will have a positive impact on the world economy. The BRIC economies have provided businesses with lucrative investment opportunities and a growth market. Making use of these opportunities could help revive the global economy. Although the BRICS are seen as a threat to developed economies such as the US and UK, the trade activities such as exporting and importing Is dower all the economies involved.