The Bric Nations Essay

2540 words - 10 pages

Currently the United States economy is in a state of financial crisis and the US’s financial woes can be felt around the world. However, the BRIC nations, which are Brazil, Russia, India and China, are a source of stability in the turbulent economic crisis, that is why it is imperative that the US maintains such relations. Jim O’Neil who first coined the term “BRIC” in 2001 exclaims that, “the BRIC consumer is going to rescue the world.” Though the BRIC nations are not superhero’s many economists reassure Americans that the economies of the BRIC nations will be able to withstand the recession, which will benefit the global market. On balance maintain international diplomacy with the BRIC nations has had a positive impact on the United States.
The first of the BRIC nations is Brazil. Though a small country, the United States recognized Brazil’s importance, being the first country to recognize Brazil’s independence in 1822. The United States and Brazil have maintained an active and affable relationship, which encompasses a broad political and economical agenda. The United States continues to deepen their relationship, which is reflected in high-level contracts between the two countries. The United States government regards Brazil as a significant power, especially in its role as a stabilizing force in Latin America.
The United State’s growing dependence on foreign oil is a major problem for the US economy. Congresswoman Judy Biggert exclaims that, “Our dependence on foreign energy sources is our Achilles heel, not just in the realm of diplomacy, but in terms of our future as the world's economic leader. “In 2008 the US consumed 23 percent of the worlds petroleum, with which 57 percent was imported. In addition, America reported to have imported 4 million barrels of oil a day from “belligerent and unstable” Middle Eastern countries. Oil practically controls the US market, leaving America at the mercy of the Middle Eastern countries that do not necessarily have the best interests of the United States in mind. In fact, the United States spends a great sum of money to finance and sustain friendly relationships with these countries.
The main question is how can Brazil help lessen the US dependence on Middle Eastern oil? It is not a matter of how they benefit the US; rather it is a matter of what they could potentially do to help the US cut down on oil imports from “rogue” nations. On September 2, 2008 President Lula announced the discovery of Tupi field in the Santos Basin, which extends over 500 miles along the coast of Rio de Janeiro. The field alone may hold up to 50 billion barrels of oil, which has an estimated worth of 6 trillion dollars. This discovery has the potential to turn Brazil into major oil and gas producer and an oil exporter for the US. Brazil and the United States would both benefit because since America has such low tariffs, Brazilian oil companies could export a large amount of oil with little net loss. The America government...

Find Another Essay On The BRIC Nations

Global Economic Development Essay

2940 words - 12 pages Economies • Burgeoning middle class & rapidly growing consumer base - The rapid economic growth and demographics of China and India are expected to result in a large middle class whose consumption would help drive the economic development and expansion of the emerging nations (BRIC economies) in particular and the global economy as well. The charts below depict how the increase in the middle class population of the BRIC countries is forecasted

Implications For International Firms In Emerging and Developing Markets:

1939 words - 8 pages business. These external environment factors may significantly disrupt the strategic direction of the business (Witold and Zelner, 2010), highlighting the importance of international business firms to analyse the influences and potential implications of these market factors. An important factor in which, there are many implications for international business firms is that of cultural differences between nations. Culture may been seen as an all

Manufacturing Organization Expansion-Brazil

1300 words - 5 pages $14,190,000,000, which is 77.38% (www.indexmundi.com). The capital account is on the rise for many reasons. Brazil is part of what Goldman Sachs calls the BRIC, which stands for Brazil, Russia, India, and China. It is predicted that the BRIC will be among the wealthiest nations in the world because of the exporting of raw materials (www.investopedia.com). Brazil continues to grow across the globe and because of their access to raw materials Brazil is viewed

Foreign Direct Investment

1211 words - 5 pages bottom at 148th (World Economic Forum, 2014). Foreign investments are primarily occurring in the rapidly developing economic nations of the world, such as the BRIC countries, as opposed to the already developed nations such as the USA and Western Europe. These developing nations are more attractive markets as they are forecast to have high rates of economic growth (6%pa) and purchasing power over the next decade whereas the more advanced and

Analyse the strategic solutions that two companies operating from BRIC countries, for example, China or Brazil, have made in the last 5-10 years

841 words - 4 pages 1.1Introduction BRIC countries are continuously emerging and holding onto a lot of money with large population. With all the factors have shown drastic economic growth not only presence but also considered as being the future leader of global economy Khanna and Wilson (2005). (SAIIA, 2011) Later in the essay to analysis the company’s major issues and actions accordance with companies key strategies on the basis of products and services, key

The Global Pharmaceutical Market Forecast

2415 words - 10 pages formulary, prescribe and request their products (Prest). BRIC nations are set to power the growth of pharmaceutical sales outside of usual western markets in the future. By 2014, emerging markets are expected to represent approximately a quarter of world’s trade in pharmaceutics. As countries in the developing world become more affluent, there is increasing demand for “sophisticated, modern healthcare and healthcare products such as

strategies

2335 words - 10 pages multinational corporations of developed countries it is difficult for the MNEs of developing countries to pursue globalization. BRIC countries are the emerging market with great potential for growth and is been targeted by MNEs of developed countries to enter this potential market and take advantages of localization, Environmental analysis: Environmental analysis is one of the vital analysis which a multinational corporation from emerging market

Why Tanzania should be chosen as the country to host the Captivating Captions call center

1246 words - 5 pages look for more cost-effective suppliers. Although Tanzania currently has one of the world’s smallest GDP, as measured per capita, according to the CIA’s “The World Factbook”, it is expected to grow between 6-7% annually after it shakes off the lingering effects of the global economic downturn. Many multi-national organizations tend to focus on business opportunities presented through investment in the BRIC nations: Brazil, Russia, India, and China

Global Environmental Regime

2129 words - 9 pages the Intergovernmental Negotiating Committee for a Framework Convention on Climate Change. According to the authors, and rightfully so, three groups emerged: states who depended on fossil-fuel resources because they were lacking; mainly the EU, states with an abundance of fossil-fuels; BRIC nations and the US, and states dependent on the fossil-fuel exports; mostly Arab states. The negotiations were unsuccessful until the United Nations

Understanding Global Cultures: Brazil

1371 words - 5 pages slums (favelas) have been estimated to be home to as many as twenty-five million people. These people live in desperate poverty. Pitiable hygiene causes serious health issues. There is no proper waste collection or gutter system. A life of offense is often the only option for jobless. Brazil with the rest of the BRIC nations have a long way to go before their current trade and industrial development transforms into benefits for the majority of

Influence of national culture on FDI

2529 words - 10 pages sample consists of ten European countries and the four fast growing economies (BRIC). We will focus on only ten European countries with the highest number of FDI inward stock. To assess our dependent variable FDI we used the 2007-2009 inward FDI stock index from the World Investment Report (WIR). This index is a comprehensive source of information on investment in nations, which is published by the United Nations Conference on Trade and Development

Similar Essays

Bric Economies Essay

1832 words - 7 pages the combined GDP of the G7 nations (Daily Beast, 2009) largely driven by an increase in the number of middle class consumers from BRIC countries (NZTE, 2011). "By 2050 it is expected that 50% of the global middle class (defined by the OECD) will be living in India and China", (OECD, 2011).The rise of the BRIC countries is described as a new era of globalisation because it is expected that they will surpass the current economic leaders (the US and

Email Essay

3648 words - 15 pages the world, Mexico and South Korea are practically wealthy. Four nations among the N11, Mexico, Indonesia, Nigeria and Turkey represent the MINT that constitute the new BRIC. In other words, MINT nations in the following 20 years will be, as the BRIC nations were for the last 20 years. In 2012, Mexico had a GDP of $1,178 billion, Indonesia $878 billion, Turkey $789 billion and Nigeria $263 billion, as Figure 1 shows. South Korea was not included

African And China Essay

994 words - 4 pages CHINAFRIK – AFRICA'S ECONOMIC MODEL AND BLUEPRINT FOR DEVELOPMENT. CHINAFRIK as a concept is defined as ''the process wherein developing states in Africa adopt economic measures from China and localize such measures for their respective development. While the developed countries of the world worry over the management of technological breakthroughs and volatile economic landscapes, many developing and underdeveloped nations are cringing in

International Economic Institutions Serve Western Interests. Do You Agree?

1833 words - 8 pages the board level in order to take into account the rise of the BRIC countries; this has led to speculation regarding Christine La Garde being the last western director as her election was close between her and the Mexican Agustin Carstens . Despite these reforms the west still controls the board of the IMF and still can be viewed as serving western interests. The World Bank was an institution created in 1944 in Bretton Woods, New Hampshire