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_BRICS Presentation.ppt 3.2

_BRICS Presentation.ppt 3.2

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Published by: Lindy Du Plessis on May 05, 2011
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International Management

The BRICS Formation
Presented by Group 10.2
Sareesha Poonoosamy, Luphumlo Twala, Dirk Ordendaal and Collin Fish

Introduction y Overview The BRIC Formation The future significance of BRIC ² video Advantages and disadvantages of South Africa joining Conclusion Questions y y y y y .


The BRIC Landscape Video .

The BRIC Formation .

gov/library/publications/the-worldfactbook/geos/sf.Relevance of BRIC : WORLD GDP Source:https://www.html .cia.

road. 2009. rail.. and ports) ‡ High public debt has remained high ‡ High domestic interest rate Source: Global Edge Business Review: The BRIC Countries. Thomas Hult: Vol 3. investment in energy. GDP: $ 2.4. No.5% GDP per capita (PPP): $ 10.194 trillion GDP Real Growth Rate: 7.900 Source: CIA World Fact Book .BRAZIL KEY STRENGTHS ‡ Abundant and varied natural resources ‡ Relatively diversified economy ‡ Favorable labor costs KEY WEAKNESS ‡ Social infrastructure is lacking (e.g.

Source: Global Edge Business Review: The BRIC Countries. Thomas Hult: Vol 3.RUSSIA KEY STRENGTHS ‡ Wealth of natural resources ‡ Skilled labor force ‡ Relative political stability which has strengthened its regional and energy position KEY WEAKNESS ‡ The investment rate is among the lowest for major emerging countries ‡ Industrial sector lacking competitiveness because of pressures associated with the obsolescence ofcapital equipment.477 trillion GDP Real Growth Rate: 3. GDP: $ 1. No.900 (Source: CIA World Fact Book) .4.8% GDP per capita (PPP): $ 15. 2009.

with debt service draining fiscal revenues IT.400 Source: CIA World Fact Book . Source: Global Edge Business Review: The BRIC Countries. benefiting from advantages continues to be India's primary weakness. 2009. GDP: $ 1.g.4. to the detriment of development ‡ High population growth spending.43 trillion GDP Real Growth Rate: 8.. Thomas Hult: Vol 3. in several economic sectors (e.3% GDP per capita (PPP): $ 3.INDIA KEY STRENGTHS KEY WEAKNESS ‡ Private Indian companies are a key asset ‡ The financial situation in the public sector to the country. No.outsourcing. pharmaceuticals. textiles).

No. Thomas Hult: Vol 3.400 Source: CIA World Factbook . KEY WEAKNESS ‡ Environmental issues are obstacles to sustainable growth ‡ Increasing inequality has resulted in growing social tensions ‡ overcapacity threatens several industrial and commercial sectors Source: Global Edge Business Review: The BRIC Countries. GDP: $ 5.CHINA KEY STRENGTHS ‡ Industrial competitiveness and diversification ‡ Strong foreign financial Investment facilitating the country·s strength.4. 2009.745 GDP Real Growth Rate: 10.3% GDP per capita (PPP): $ 7.

cia.gov/library/publications/the-worldfactbook/geos/sf.html .The future significance of BRIC Source:https://www.

Advantages ‡ ‡ ‡ May serve as gateway for BRIC into rest of SADC / Africa Enhance trade possibilities with BRIC countries Significant inflows of FDI to upgrade and expand infrastructure Opportunities for new global political platform Opportunity for SA to lead African emergence as global economic force Benefit from fraternal environment. share economic lessons learnt Platform on which to further diversify away from European markets (limits risk) ‡ ‡ ‡ ‡ .

Weakening the rand -Direct govt intervention in a range of sectors -Reducing international competition .Disadvantages y y y y Smallest population and economy size ($300 billion) HIV/AIDS pandemic May lose position as Africa·s biggest economy in future Runs risk of becoming irrelevant (limited power) within BRICS due to her small size compared to BRICS peers y Proposed growth policies might achieve the opposite .

Disadvantages y Unresolved issues (internal conflict) affecting BRIC cohesion Limited access due to barriers of entry y .

Conclusion y Investment origin Informal association BRIC countries will become a dominant force Our Credentials Pros and cons for South Africa y y y y .

y Demonstrates South Africa·s growing stature Potential benefits Great opportunity Final outcome is in our hands y y y .

Questions .

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