Saturday, April 30, 2011

BRIC: An economic overview

The BRIC group is becoming a world superpower in terms of international trade. Five countries - Brazil, Russia, India, China and South Africa - are leading the world in growth, each with its own unique "core competencies" for marking of money. We will break down each BRIC country, what they do and their impact on the future.

Brazil - Brazil leader in the utility improved efficiency and is one of the few countries with a real plan to create its own energy in sufficient quantity to meet its needs. The fields of sugarcane to power ethanol excellent infrastructure, and investment has proven to help improve the Brazilian economy with a comparative advantage in the production of inexpensively. It is easy to run a trade surplus when you do not import oil!

Russia - probably the link in the BRIC group, Russia has an advantage in the production of energy from its oil fields. Corruption creates a very dangerous risk that investors have a price on the market. Equities are cheap here, and for good reason - they could simply get stolen from you.

India - India is a very balanced party of the BRIC group, with its power from a hand of cheap labour in the service industries. Unfortunately, the India currently has a terrible dependency ratio, and recent upticks in wealth are not registered to the aged, the poor citizens.

China - China leads the world in growth, but concerns about a rampant housing market began to cool expectations of investors in the short term. A net exporter, most analysts expect that China will be soon turn consumptuous emerges from its consumer economy. However, its power can be leveraged with its undervalued Renminbi.

South Africa - one of the most interesting of all countries is South Africa. Especially a "border", the South African economy has an excellent opportunity to raise his uncultivated population, rural growth. One of the least developed countries continents (Africa) best is not hurt a bit!

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