Meet the BRIC’s Case
1. Map the likely evolution of the BRIC’s. What indicators might companies monitor to guide their investments and actions?
A: The BRIC’s has been involved in a strongevolution since its beginning. In order to map that evolution it is crucial to mention the previous status of the countries that conform it, this status include political and economical issues that wereaffecting the countries before belonging to the BRIC’s and in some way it promoted the necessity of help by others nations. In the case of Brazil, for example, was suffering hyperinflation and some othereconomical problems. Russia was lockdown behind the Iron Curtain and India was experimenting socialist issues as a country and had kicked out IBM and Coca-Cola (Daniels 160). China was still facingconsequences of the Cultural Revolution. Then, as part of their evolution in the BRIC’s some of the nations reached a rapid market growth by having GNI per capita incomes of $3,000 and $10,000. But ithasn’t been like that for all of the members, mostly in the case of Russian because India, China and Brazil are still struggling to reach those levels, but it is true that they are each day improvingtheir economies. According to BRIC’s plans it is not going to be easy but if they continue struggling in the near future their income per capita will raise and their people is going to be less poorthan other countries from near regions.
In the case of the indicator that the companies might monitor in order to decide to invest will be their revenue per capita and the level of debts that thecountry might have. Another important point is the external relations with specific nations and countries among the region as well as taxation issues which can affect or benefit, depending on the case,at the moment of international transactions and agreements.
4. How might managers interpret the potential for their product in a market that is, in absolute economic terms, large but, on a per...
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