The Importance Of The BRIC Countries To The United States Economy Term Paper

The Importance Of The BRIC Countries To The United States sparing - Term Paper ExampleAs the level of integration amongst the financial markets increases, it is critical for policy makers and spherical investors to understand the synergy between certain economies. This is important to adjust their portfolios and achieve proper diversification. In numerous ways, these are unprecedented times. The study and analysis of the transactionhip between the fastest emergent economies and the United States frugality is gaining a lot of attention. The US economy dominates the global economic environment influencing industry trends and market behavior. However, the evolving economies of the BRIC countries rescue challenged the US economy and it is envis epochd that the future holds immense potentials for growth and development in these countries. US trade relations and economic ties with these countries result play an important role in defining future prospects and economic potentials for some(prenominal) US and BRIC countries. The study evaluates the growing significance of the BRIC countries to the US economy and analyses the factors driving these economic indicators. BRIC countries are pass judgment to contribute one-third of the worlds GDP increment in 2015, by which time their kernel economy bequeath surpass America, according to a leading Chinese think tank (Economic Times).The countries of Brazil, Russia, India and china are the light upon emerging markets in the world economy. China and India represent for approximately 33% of the worlds total population. Both these countries carry a high concentration of their population in the middle class who induce high purchasing power. The gross domestic product (GDP) rates in the BRIC countries are higher than those of developed countries (Desai, Acharya & DeKeizer). By 2025, it is estimated that BRICs will account for 50% of G6 countries. By 2045, the BRIC economies will take over that of G6 countries. By 20 25, annual increase in dollar spending from BRICs would be twice G6 and four times by 2050 (Wilson). By 2033, it is estimated that India will have the third largest economy in the world after China and the United States. Among the BRICs, India will have the fastest growing economy. As a percentage of population, India will have highest working age population i.e. 15 to 60 years. In 2050, three of the largest four economies will be in Asia (Desai, Acharya & DeKeizer). The emerging markets provide a number of opportunities. They have the potential to have high growth rates. They have the readiness to attract greater volume of foreign direct enthronisations (FDIs). They make a huge amount of investment in infrastructure. The presence of a large middle class gives a boost to demand. There is an abundant supply of skilled and cheap labor. There is great opportunity for outsourcing work particularly in India. emerging markets present even more opportunities in the form of disinvestme nt of public sector units (PSUs). There is large scale of measurement of mergers and acquisitions both domestically and globally. They are also fast in catching up with technological changes. These BRICs have a vast supply of agricultural and mineral resources. Their commodities markets are also growing rapidly (Desai, Acharya & DeKeizer). In demographic terms, BRIC consists of worlds two most populated countries and another two with sizeable populations. China has the worlds largest population accounting got one-fight of the total world population. India accounts for 17.5% of the world