The Brics - Vanguard of the Revolution

Kelsey Maggio

INBS250_01FA16

The BRICS: Vanguard of the Revolution

1. Estimate the likely market evolution of the BRICs over the next decade. What economic indicators might companies monitor to best guide their investments and actions?

Over the next decade, Brazil, Russia, China and India should see significant changes in exponential growth and income per capita is expected to increase. Over eight years, BRICs combined economic output of global share increased 16% to 22%. Politically, culturally, and politically, these countries are modernizing and continue to. Since the fall of communism, Russia has seen an increased number of consumers. Brazil, Russia, China and India’s economic output of global share is continuing to increase and will continue over the next decade.

1. Identify three implications of the emergence of the BRICs for careers and companies in your country.

The emergence of BRICs could benefit our country by creating job opportunities which could potentially decrease unemployment rates. Also, it may affect competition allowing better prices and better quality of products imported. The emergence could also expand product options, which may also affect competition. As BRICs becomes more powerful, it may negatively affect the U.S because it may cause a monopoly to form causing domestic firms to take a hit.

1. Do you think recency bias has led to overestimating the potential of the BRICs? How would you, as a manager for a company assessing these markets, try to control this bias?

As a manager, I would not only look at recent activity to determine the potential of BRICs but more importantly the “what ifs”. I would prepare myself for worst case scenarios and other events that may have a large negative impact on the company such as natural disasters and unexpected financial crisis. Although BRICs is a strong competition and has power, selfishly companies must keep in consideration there is always room for failure.