In economics BRIC is a grouping acronym that refers to four countries. These four countries are the fastest growing country in terms of economic growth.
B = Brazil
R = Russia
I = India
C = China
This acronym first prominently used in a Goldman Sachs report from 2003 which speculated that by 2050 these four countries would be wealthier than current economic superpowers.
The BRIC thesis posits that China and India will become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials. It's important to note that the Goldman Sachs thesis isn't that these countries are a political alliance (like the European Union) or a formal trading association - but they have the potential to form a economic bloc. BRIC is now also used as a more generic marketing term to refer to these four emerging economies. (Investopedia, Dec 29, 2012)
Duo to lower labour and production many big companies from around the world see these countries for their future expansion.
Culture and work style in BRIC countries:
As discussed above that these are the fastest growing countries where labour and production costs are much lower than developed countries, so big multinational companies want to establish their presence in these countries.
Why BRIC countries are important for world’s economy:
The BRIC are both the fastest growing and largest emerging . They account for almost three billion people, or just under half of the total population of the world. In recent times, the BRIC have also contributed to the majority of world GDP growth. (WWW.economywatch.com)
Different economists predicted that it’s only a matter of time before China becomes the largest economies of the world. The undisputed heavyweight, though, will be China, also the largest the creditor in the world.
Apart from their growth the BRIC countries frankly have very little in common. They are primarily an investment category now, although there may some political and economic alliances that develop from that grouping. If they do, it is likely to be temporary - once China has assumed its rightful place, it may have no need for these alliances. A G2 of China and the US may be more important for it unless the 2050 predictions do come true. (www.economywatch.com)
In a summit organised by BRIC countries in 2008 and analyst believed that BRIC countries want to convert their economic power into political power. Analysts also believe that China can dominate in manufacturing, India in services and Russia & Brazil in raw material supplies.
Last year GDP:
China: $5.87 trillion
Brazil: $2.2 trillion
Brazil: $2.2 trillion
Russia: Just under $1.5 trillion
India: $1.3 trillion
1. Investopedia, www.investopedia.com, accessed on December 29th 2011.
2. Economy watch, www.economywatch.com, accessed on December 29th 2011.