BRIC

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BRIC

  1. 1. Economic Factors concerned to B razil R ussia I ndia C hina By: Sajan Christudas Jigar lakhani Sub : International Business
  2. 2. <ul><li>Economic Factors </li></ul><ul><li>GDP </li></ul><ul><li>GNI </li></ul><ul><li>PER CAPITA INCOME </li></ul><ul><li>ECONOMY FREE INDEX </li></ul><ul><li>FISCAL POLICY </li></ul><ul><li>MONETRY POLICY </li></ul><ul><li>LABOUR WAGES </li></ul><ul><li>INFLATION </li></ul>
  3. 3. <ul><li>Gross Domestic Product (GDP): </li></ul><ul><li>Total value of goods and services produced within the nation’s borders over one year. </li></ul><ul><li>No matter whether Domestic or Foreign-owned companies make the product. </li></ul><ul><li>E.g.. Both a Ford and a Toyota truck manufactured in the United States would be counted in US GDP but the truck made in Mexico by Ford would not </li></ul>
  4. 4. <ul><li>Gross National Income (GNI): </li></ul><ul><li>GDP plus the income generated from exports, imports and the international operations of a nation’s companies equals GNI. </li></ul><ul><li>E.g. </li></ul>
  5. 5. <ul><li>THE 10 LARGEST ECONOMIES BY GNI,2005 </li></ul>RANK COUNTRY GNI(US $, MILLIONS) 1 UNITED STATES 12,912,889 2 JAPAN 4,976,464 3 GERMANY 2,875,640 4 UNITED KINGDOM 2,272,716 5 CHINA 2,269,745 6 FRANCE 2,169,169 7 ITALY 1,772,942 8 SPAIN 1,095,876 9 CANADA 1,052,563 10 INDIA 804,967
  6. 6. <ul><li>Per Capita Income: </li></ul><ul><li>Transforming GNI by the number of people who live in country. </li></ul><ul><li>Per Capita Income=Total GNI Divided by the Population of the Country. </li></ul><ul><li>This helps in explaining the economy’s performance. </li></ul>GNI per Capita,2006 by World Bank Income Groupings High Income ($11,116 or more) Upper-middle income ($3,596-$11,115) Lower-middle income ($906-$3,595) Low income ($905 or less)
  7. 7. <ul><li>Economy free index: </li></ul><ul><li>Economic freedom is the fundamental right of every human to control his or her own labor and property. </li></ul><ul><li>In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. </li></ul><ul><li>. </li></ul>
  8. 8. <ul><li>We measure ten components of economic freedom, </li></ul><ul><ul><li>Business Freedom </li></ul></ul><ul><ul><li>Trade Freedom </li></ul></ul><ul><ul><li>Fiscal Freedom </li></ul></ul><ul><ul><li>Government Spending </li></ul></ul><ul><ul><li>Monetary Freedom </li></ul></ul><ul><ul><li>Investment Freedom </li></ul></ul><ul><ul><li>Financial Freedom </li></ul></ul><ul><ul><li>Property Rights </li></ul></ul><ul><ul><li>Freedom from Corruption </li></ul></ul><ul><ul><li>Labor Freedom </li></ul></ul>
  9. 9. <ul><li>Fiscal Policy: </li></ul><ul><li>Is the policy of the Government pertaining to Public Revenue, Public Expenditure & Public Debt. </li></ul><ul><li>Tools of Fiscal Policy: </li></ul><ul><ul><li>Taxation ( VAT, Customs, Income, Corporate, Service, etc) </li></ul></ul><ul><ul><li>Public Expenditure, Public Debt </li></ul></ul><ul><ul><li>Deficit Financing. </li></ul></ul>
  10. 10. <ul><li>B (razil) R (ussia) I (ndia) C (hina) </li></ul>
  11. 11. <ul><li>The acronym was first coined and prominently used by Goldman Sachs in 2001. </li></ul><ul><li>The 4 countries, combined, currently account for more than a quarter of the world’s land area </li></ul><ul><li>more than 40% of the world’s population. </li></ul><ul><li>Goldman Sachs predicts : </li></ul><ul><ul><li>China and India, respectively, to be the dominant global suppliers of manufactured goods and services </li></ul></ul><ul><ul><li>Brazil and Russia would become similarly dominant as suppliers of raw materials. </li></ul></ul>
  12. 12. <ul><li>Brazil is dominant in soy and iron ore while Russia has enormous supplies of </li></ul><ul><li>oil & natural gas. </li></ul><ul><li>India and China have already started making their presence felt in the service and manufacturing sector respectively in the global arena. </li></ul>
  13. 13. <ul><li>B razil </li></ul>
  14. 14. <ul><li>The economy of Brazil is the world ‘ s eigth largest by nominal GDP. </li></ul><ul><li>The economic system of Brazil is standing on a floating exchange rate, a regime that is inflation targeting and a compressed fiscal policy </li></ul><ul><li>Brazil is one of the fastest growing major economies in the world. </li></ul>
  15. 15. <ul><li>Brazilian labor force is estimated at 100.77 million of which </li></ul><ul><ul><li>10% is occupied in agriculture, </li></ul></ul><ul><ul><li>19% in the industry sector and </li></ul></ul><ul><ul><li>71% in the service sector. </li></ul></ul><ul><li>GDP (2010) was 7.6% </li></ul><ul><li>Brazil reported a government budget surplus equivalent to 2.20 percent of the Gross Domestic Product (GDP) in 2010. </li></ul><ul><li>Revenues $354.8 billion </li></ul><ul><li>Expenses $434.9 billion </li></ul>
  16. 16. <ul><li>R ussia </li></ul>
  17. 17. <ul><li>GDP growth </li></ul><ul><li>(2010) $2.229 trillion 3.8%( budget surplus $9.6 billion) </li></ul><ul><li>(2009) $20147 trillion -7.9%(budget deficit $18.8billion) </li></ul><ul><li>(2008) $20331 trillion 5.2% </li></ul><ul><li>Per Capita </li></ul><ul><li>(2010) $15900 </li></ul><ul><li>(2009) $15300 </li></ul><ul><li>(2008) $16600 </li></ul><ul><li>Public Debt </li></ul><ul><li>(2010) 9.5% of GDP </li></ul><ul><li>(2009) 8.3% of GDP </li></ul><ul><li>Budget revenues </li></ul><ul><li>(2010) $262 billion </li></ul><ul><li>(2009) $341.1 billion </li></ul>
  18. 18. <ul><li>About 10% of the labor force in the country is involved in agricultural field and the related sectors which credit almost 5% of the total GDP for the country. </li></ul><ul><li>About 32% of the russian population is employed in the industrial sector which contributes around 34.8% of the total GDP of the country. </li></ul>
  19. 19. <ul><li>I ndia </li></ul>
  20. 20. <ul><li>About 10% of the labor force in the country is involved in agricultural field and the related sectors which credit almost 5% of the total GDP for the country. </li></ul><ul><li>About 32% of the russian population is employed in the industrial sector which contributes around 34.8% of the total GDP of the country. </li></ul>
  21. 22. <ul><li>C hina </li></ul>

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