BRICS Nations
BRIC is an abbreviation for the emerging nations of Brazil, Russia, India, and China nations, which are held to be the predominant eminent providers of mass-produced, industrialized services, goods, alongside the raw materials, as it is envisioned by 2050. India is perceived to become the global leading industrial service providers, whereas China is understood to become the leading global provider for goods (Mallick, 2015). On the other hand, Brazil and Russia are foreseen to correspondingly become the core providers of raw materials. Also, by the end of 2010, South Africa was endorsed in the group, thus creating the abbreviation for BRICS. Therefore, this paper extensively elaborates on BRICS and its difference to NAFTA.
The BRIC nations were initially anticipated to be the most progressive rising marketplace economies by O’Neill Jim in 2001. It is actually claimed that by the end of 2050, this financial prudence ought to be more affluent as compared to many of the present chief economic powers. That is, this development is because of the lower effort and production outlays in these states. Through the addition of South Africa in 2010, the BRICS states are seen as the base roots of overseas developments or the FDI opportunities, as seen in terms of economy. Additionally, foreign business extensions ensue in countries with favorable economies, such as the BRICS, to invest in (Nistor, 2015).
The main economic difference between the BRICS states and NAFTA is that BRICS partakes to entail the most predominant potential, in terms of resource availability, predominant domestic marketplaces alongside the workforces (Hill et al., 2020). The entire BRICS states GDP reaches approximately one-third of the world’s GDP, whereas NAFTA covers only 19% of the world’s GDP. Additionally, the BRICS states always employ much effort that projects towards advancing and solidating the associated states, alongside instituting appropriate financial institutions.
References
Hill, C. W., Hult, G. T., & Mehtani, R. (2020). International Business: Competing in the global marketplace, 12/E (SIE). McGraw-Hill Education.
Mallick, J. (2015). Globalization, structural change, and labor productivity growth in BRICS economy (No. 141). FIW Working Paper.
Nistor, P. (2015). FDI implications on BRICS economy growth. Procedia Economics and Finance, 32, 981-985.