Question

Brics and Mitsk Project
Week 4
Guidelines and Grading Rubric (200 points)

Objective

This project introduces the Brics and Mitsk countries and integrates the concepts presented in Weeks 1–4. It also provides a common foundation for future discussions.

Guidelines

Prepare a PowerPoint Presentation based upon a Brics and Mitsk Country: Brazil, Russia, India, China South Africa, Mexico, Indonesia, Turkey, and South Korea. These countries have been identified as important emerging countries that are significant economic powers individually, as well as becoming the basis of an important new economic group. It is important to develop an understanding of these countries—for the purposes of understanding global business strategy, and the opportunities and threats they pose.

Your country choice should be approved by your professor in Week 1.

• Please develop a set of slides that would help an organization contemplating doing business in the country you have been assigned.
• Please focus your analysis on Porter’s Diamond of National Advantage.
• Please provide images and key facts that capture the economic conditions and culture.
• Please develop a presentation with approximately 15 slides.

A successful project will earn a maximum of 200 points demonstrating

• accurate, relevant, and timely research; and
• PowerPoint slides that include good quality content, clear and compelling, yet professional presentation style.

Milestones

• Week 1: Identify country and obtain Professor’s approval.
• Weeks 2–3: Research and prepare slides.
• Week 4: Submit PowerPoint for grading and upload to the Dropbox.

Answer 1

( I cant upload powerpoint file here, so i will be telling you all about BRICS, Please make slides yourself )

“BRICS” Which now contribute to nearly 30% of world’s GDP , almost 50% of world’s population was coined by then goldman sachs chairman jim o’neill. Back in days when india was just a piece of rusted iron and most of the asian and south american countries where just some barren lands in terms of technology and development, but to huge astonishment it was predicted to be surpassing most of the western powers in terms of economy by 2050.

In his starting days as a chairman on 2001 jim o’neill, hit by the devastating 9/11 terror attacks started to think how other countries especially asians started feeling the burden of western supremacy. One fine day turning out to be economic witch with the crystal ball been replaced by the world globe, started making predictions that these countries “BRAZIL, RUSSIA, INDIA AND CHINA” would reach a point where they would surpass the western dominance both in terms of power and economy.

He came to the assumptions based on:

• high population( was among top 10 most populous countries)

• weak and developing economies.

He assumed that all these 4 countries owing to their rich natural resources and lust for development would drag them from rags to riches. On his article he stated that this acronym “BRIC” would create a new chapter in terms of economy , he even stated that by 2050 these countries would surpass western powers. Fascinated by his article many MNC’s who just wanted to expand their wings to other regions started taking these countries to be an option. Biggies like VODAFONE, BHP BILLITION, NISSAN, IKEA etc. started their expansions in these countries especially in china. But there was even a lot of humiliation regarding these predictions, many great economists believed this to be a well penned fairy tale with some wicked intensions of attracting investors and making themselves more rich using some words like globalization. considering the double digit inflation and poor governance many said it is highly impossible for BRAZIL to raise to the standards of strong economy and few even commented that BRAZIL is only named inorder to obtain a fascinating name and the growth of these countries to be a super powers to be only a myth.

2003, rivals HSBC & Duetsche bank started pouring tons, now “BRIC” had become a marketing entity. stocks arose from 2% - 9%. owing to industrilization, employability and economic figures started to raise. Now he corrected his statement that they would emerge as economic powers by 2032 preponing it by nealy 20 years.

These 4 countries inorder to improve their economic ties first met on 16th june 2009 in russia.

1. India conducted its first meeting on 2012.

2. In 2010 SOUTH AFRICA was added to the alliance( since none of the african country was involved in this developing countries alliance SA was added)

3. Now contributes to nearly half of the worlds population and 30% of worlds GDP

4. Opened its own bank namely , NEW DEVELOPMENT BANK(NDB) located in china, branch is being opened in SA to look after the african affairs

5. Recently 8th BRICS conference was conducted in GOA(INDIA).

PRESENT COUNTRY WISE STATUS:

BRAZIL :

The country which was once considered to be one of the fastest growing economy, came back to its past glory flying all through the air to the sand.

Now its GDP growth fell to as low as -3.2%, sky rocketing inflation(at present 10.47%) , unemployement rate rose to nearly 12%.

If such is the case for coming years, it may lead to huge problems in the economy, finally leading to recession.

REASONS FOR THIS FALLDOWN:

Poor governance:

Dilma Rousseff who was then president of BRAZIL, is considered to be the direct cause of this falling economy

HER POLICIES:

• During her tenure from 2011–14 she spent heavily making the fiscal deficit jump from 2% of the GDP to nearly 10% in 2015

• She spent heavily on pension policies, it rose to a position wherein your salary would certainly be equal to your pension.

• She exempted many sectors from tax, making the situations worse , now the public deficit sky rocketed with extravagent spending to a lower tax returns.

• Corruptions and limiting the foreign competitions reduced the innovation and in return reducing the high yielding companies.

• poor foreign policies, she put no thrust in maintaining good foreign policies, she reduced the spendings & regions for both bilateral and unilateral ties were reduced from 80 to nearly 18–20 countries in 2015.

RUSSIA:

• post cold war and fall of soviet union on 1991, RUSSIA faced huge crests and troughs in the economy.

• Although it has very strong foreign policies & abudant natural resources, it couldnt get enough high skilled labour and exact polices to build back its past glory. A country which once held huge economy, great army now faces a clear decline in its economic growth.

• Good policies could again bring this country to retain the past as the great nation again.

INDIA:

“Power will go to the hands of rascals, rogues, freebooters; all Indian leaders will be of low calibre & men of straw. They will have sweet tongues and silly hearts. They will fight amongst themselves for power and India will be lost in political squabbles. A day would come when even air and water would be taxed in India.”

These were the last words of Winston Churchill about India. His words clearly shows that none of them in this world believed in India’s future. Our start was merely dominated by cries of hunger & Crimes of anger. Being looted by the Britishers we were bearly left with any resources to even let our children eat. We were left broken, the country which once accounted nearly 25% of worlds GDP now striving even to get proper food. The country which once had the greatest and oldest civilizations now opening its hands to get out some aid. The country which was the origin of economic policies, military strategies and good governance( arthasastra written by chanakya) now borrowing the ways to lead its own people and bring them out of the scar called poverty.

Thanks to the Gandhis who made the scar of poverty more painful by their never ending scams, limiting FDI’s and setting internal clashes.

BOOM its 1991, the 3 letter word LPG fueled our economy, now we are

• Worlds fastest growing economy

• 3rd interms of GDP PPP and 6 th in terms of nominal GDP.

• Now we hold worlds second largest army, 4th most powerful army in the world

• We are now the second largest producer of food in the world accounting to nearly 10.01% of worlds food production .

• We now have one of the greatest space agency ISRO, proving its power with its succesful mars mission and recent record of launching 104 satellites into space.

• We provide highest number of active personnel for UN peace keeping missions.

There are many such kinds of great achievements we have reached in the span of 20 years. The jouney we had from being nothing to people in everything is really spellbounding. The way we are growing from rags to riches is really inspirational.

TRUE, INDIA IS RAISING.BUT NOT AS A SUPER POWER BUT AS A PEACEFUL AND SELF SUFFICIENT NATION.

MERA BHARATH MAHAN, JAI HINDH.

CHINA:

The story of china is similar to that india. Both once held great empires and great cultures. China which is a big chunk of land has a numerous resources.

• it is the largest exporter of food and technology.

• It has a very skilled labour and yeah very huge army

• It has thumping GDP figures

• economic growth is nearly 6.5%

INDIA & CHINA are in its way to shift the western supremacy to the east.

SOUTH AFRICA:

• This is the young nation in BRIC, making BRICs to be BRICS. SA joined BRIC on 2010.

• South Africa was the fastest developing nation in africa along with Nigeria. It was added to BRIC since no african nation was involved in the fastest growing economies list

• SA conducted 5th BRICS summit.

• Though it was once one of the fast growing economy in the world, its economy is slowly shattering down.

• Now it has double digit inflation and unemployement to alarming high of 26%.

REASONS:

1. Completely corrupt leaders, its president Jacob Zuma being a very good example. There were numerous amounts of scams rapes in the country.

2. War against white peasants- After hit by inflation and alarming unemployement rates, Blacks in the country started “BLACKS FIRST POLICY” they started killing the white peasents who own a land and occupy it. They came to a sense that it is the only possible way to survive in this instances.

3. With worst policies, public deficit arose to nearly half of its GDP.

Just like BRAZIL poor governance is completely disrupting its economic growth. Lets hope 2019 elections will atleast bring some change in the government or atleast its policies.