LOGO Globalization A Summary

Contents BRIC Nations Overview Russia India China Brazil

RussiaIndiaChina BRIC Nations 1.GDP: $1,575bn and and $8,210 per head. 1.Main export destinations are the US, China and Netherlands. 2.Main origins of import are US and China and Germany. 1.GDP: $1,679bn and and $11,830 per head. 1.Main export destinations are the Germany, Netherlands and Turkey. 2.Main origins of import are Germany, China and Japan. 1.GDP: $1,159bn and and $1,020 per head. 1.Main export destinations are the United Arab Emirates, US, China and UK. 2.Main origins of import are China Saudi Arabia, United Arab Emirates and US. 1.GDP: $4, 327bn and and $3,270 per head. 1.Main export destinations are the US, Hong Kong and Japan. 2.Main origins of import are Japan, South Korea and Taiwan.

Russia Economy 1.Main exports: petroleum and petroleum products, natural gas, wood 1.Main imports: machinery and equipment, consumer goods 1.GDP growth estimated of around 8% annually for the next three years Social 1.Growing and increasingly affluent middle class 1.Declining fertility rates: shrinking population/workforcePolitical 1.Low tax rates: corporate tax: 20% and individual income tax only 13% 2.Private sector subject to heavy state interference, weak property rights, black economy still highly evident; 1.Corruption: Transparency International 147th out of 179 countries 1.Key strengths: wealth of natural resources, limited foreign debt, low corporate tax 1.Key weaknesses: corruption, dependence on oil sector, red tape Strengths & weaknesses

Russia Comparative Analysis RussiaUSAUKGermanyFrance GDP1231 bln14256 bln2175 bln3347 bln2649 bln % World Econ.1.99%23%3.51%5.4%4.27% GDP per capita Growth rate5.2%1.7%1.2%2.2%0.7% Unemployment6.8%9.6%7.8%7.6%11% Interest Rate7.75%0.25%0.5%1.00% Inflation Rate6.1%1.1%3.1%1.00%1.4% Current Acct bln-123 bln-9.6 bln3.1 bln-3.1 bln Balance/Trade12.47 bln-42.8 bln-3.26 bln 18.8 bln-7.6 bln Exports32.32 bln108 bln35 bln GBP 83 bln EUR33bln EUR Note: All figures, unless otherwise stated, are in US Dollars

India Population: 1.16bn (2 nd in the world) It’s economy was one of the first to recover – growing by 5.9% in 2009 Major investors in India in 08/09 – Singapore, US, Cyprus and Netherlands

India Comparative Analysis IndiaUSAUKGermanyFrance GDP per capita Growth rate7.4%1.7%1.2%2.2%0.7% Unemployment7.32%9.6%7.8%7.6%11% Source: Trading Economics 2010 Note: All figures, unless otherwise stated, are in US Dollars GDP per Capita at Current Prices Source: World Bank Development Indicators

China Main trading Partners: USA($162.9 Billion in 2005), Hong Kong, Japan, South Korea, Germany fall in demand for Chinese Exports China commits to reduce carbon gasses by 40% from 2005 levels. “One child” policy = China is one of the most rapidly aging countries Tenfold increase in GDP since 1978 A shift away from centralisation in the past 30 years Second largest Economy after US Population: 1.3 billion

China Comparative Analysis ChinaUSAUKGermanyFrance GDP4.33 trillion14256 bln2175 bln3347 bln2649 bln % World Econ.21%23%3.51%5.4%4.27% GDP per capita Growth rate9.1%1.7%1.2%2.2%0.7% Unemployment4.2%9.6%7.8%7.6%11% Interest Rate5.31%0.25%0.5%1.00% Inflation Rate3.6%1.1%3.1%1.00%1.4% Current Acct.250 bln-123 bln-9.6 bln3.1 bln-3.1 bln Balance/Trade16.9 bln-42.8 bln-3.26 bln18.8 bln-7.6 bln Exports1.2 trillion108 bln35 bln GBP 83 bln EUR33bln EUR

Brazil Key Strengths Abundant & varied natural resources Diverse economy with favourable labour costs Lacking infrastructure energy, rail, road, ports, etc Strong currency (exports may go down) Weaknesses PEST! Building up reserves while avoiding foreign-currency debt Political: Lula elected However, still high level of violence & corruption. Economic: Strong currency, GDP increasing, inflation, interest rates, and unemployment decreasing. However, still very low.

Brazil Comparative Analysis BrazilUSAUKGermanyFrance GDP1572 bln14256 bln2175 bln3347 bln2649 bln % World Econ.2.54%23%3.51%5.4%4.27% GDP per capita Growth rate1.2%1.7%1.2%2.2%0.7% Unemployment6.7%9.6%7.8%7.6%11% Interest Rate10.75%0.25%0.5%1.00% Inflation Rate4.49%1.1%3.1%1.00%1.4% Current Acct.-3 bln-123 bln-9.6 bln3.1 bln-3.1 bln Balance/Trade1.36 bln-42.8 bln-3.26 bln18.8 bln-7.6 bln Source: Trading Economics, 2010 Note: All figures, unless otherwise stated, are in US Dollars.

Sources: Trading Economics, 2010; Economy Watch, 2010

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