International Enterprise: The BRICS

The BRICS is an acronym for Brazil, Russia, India, China, and South Africa, an alliance of five big emerging economies. Essentially, both of these countries are at the same level of economic growth but are not yet considered developed countries at that stage. They still have the potential to manufacture a vast variety of industrial goods, natural resources, and raw material suppliers. However, since these countries are the largest emerging markets and are rapidly expanding, combining their economies could eclipse today's combined economies of the richest countries by 2050. It is, however, important to recognize that apart from their growth characteristics, the BRICS countries have little in common. This essay will highlight the economy of each nation, and determine why they are growing in importance on the international stage. Additionally, this paper will describe the internal and external forces that may affect the BRICS success as well as the significance of the Saint Leo University core values to the rise of these economies.

The BRICS Economy

Each of the five members of the BRICS plays a significant role in contributing to the world’s GDP. From an export driven economy, China has been considered the second-largest economy in the world and the dominant economy among the BRICS nations. Brazil is the 7th biggest economy, followed by India, which is in 10th position. However, among the BRICS, India still possesses the greatest potential for growth. Russia is the 11th dominant economy in the world. Essentially, both China and India are the largest suppliers in the world of manufactured goods and services. On the other hand, Russia, Brazil, and South Africa are considered the three most dominant suppliers of raw materials, globally. As such, when the five nations combine their economies, they can be able to compete with other richest alliances in the world (Mohamed, 2016). The BRICS countries are working towards being a valued place for foreign investment due to their large populations and the impressive economic growth rate.

Importance of the BRICS on the International Stage

Brazil has natural resources in the country, thereby becoming one of the most valuable energy exporters in the world. As a result, many multinational corporations are eager to invest in their economy. Russia is the major hydrocarbon exporter of the world due to its possessions, an aspect that provides numerous opportunities for foreign investors. This country has the world’s largest natural gas reserves, eight largest oil reserves, and the second largest coal reserves. In China, huge population and a large market are the two advantages of this country in the international stage. In addition, there are few barriers to enter the market, and favorable government rules. South Africa is considered the investment powerhouse in Africa due to its world-class infrastructure, research capabilities and established manufacturing base. Additionally, political stability and a good supply of skilled labor force make South Africa one of the most lucrative investment destinations. Being the 10th largest economy in the world, India has very highly skilled human resources, which promotes growth (Atwood et al., 2008).

External and Internal Forces of the BRICS Countries

Brazil has been experiencing a continuous social and economic growth because it is full of richness in natural assets. The government has also created policies of exemptions from exercise duty, an aspect that has attracted multinational organizations. India and China have also established favorable investment policies making them attractive for foreign investors. Besides, the two countries have natural resources that are much needed for commercial importance. South Africa’s government has recently announced on Green Field investment, which appeals foreign investors to invest in productive and innovative sectors. In Russia, the immense amount of natural resources and generation of nuclear power are the most appealing factors to big investors (Wenzel, 2014). There are also government-led programs that open up Russia to foreign investors in very profitable investment sectors.

Responsible Stewardship

The Saint Leo University core value of responsible stewardship argues that our creator blesses us with an abundance of resources. As such, we must optimize and apply these resources to development in our communities. In the same way, international business should focus on sustainable use of the available resources to achieve success. In the BRICS countries, there are numerous natural resources that can be utilized for the good of the whole world. For instance, almost all the five nations have oil reserves and coal. These resources should be used responsibly to serve the populations of the world in a manner that benefits everyone (Govoni et al., 2005). For example, by working together, these five nations can effectively counter the organizational structures and the entrenched interests of the west by providing quality products and services at an affordable price.

Conclusion

The primary purpose for the BRICS coming together is creating a single platform where they can share and enhance their perspective on the global economy. Additionally, they can easily achieve their desire of gaining greater influence and bargaining power in international commerce. It is of the essence to recognize that the BRICS countries are known for their tremendous growth potential and the large markets. As such, when they combine their efforts, these nations can challenge the richest alliances in the world. As a result, there will be high quality and more affordable products and services that will be readily available in the market to avoid monopoly.

References

Atwood, J., Brodley, J., Friedmann, W., & Weiser, G. (2008). International joint ventures. Journal of Reprints for Antitrust Law and Economics, 15(1), 403-540.

Govoni, J., Wright, V., & Wubbenhorst, P. (2005). Fusions: Integrating values in higher education. Journal of College and Character, 6(5).

Mohamed, S. (2016). A critical overview of the objectives and future direction of the BRICS and its new development bank. Journal of International Banking Law and Regulation, 31(3), 495-506.

Wenzel, N. (2014). BRICS corporates: In collaboration or in competition in Africa?:Case studies from the South African mining industry. The South African Journal of International Affairs, 21(3), 431-448.