Emerging Markets: BRIC

With the United States economy being so terrible, companies are looking into investing in countries that will provide a higher return for their money. Developed countries in particular are discovering new methods of investing in emerging markets. Emerging markets also known as, “developing” countries are nations that are in the process of rapid growth and industrialization. Today, there are roughly twenty-eight nations that are considered developing countries. The most eminent emerging markets are notoriously identified as B.R.I.C., which I will later discuss. While the U.S. among other developed countries are described with a high income per capita, superior level of industrialization, high gross domestic product (GDP) and Human Development Index. At the same time, the criteria of a developed country might cause controversial opinions most recognized countries are Japan, Germany, The United Kingdom, Canada, Australia, New Zealand and countries from the European Nations, excluding Eastern countries. In contrast with the developed countries, emerging markets are countries that are still in the process of increasing their industrialization, income per capita and GDP. There are several causes of their “in process” standing, but political reasons and economic stability are the major reasons emerging markets have not reached to the “developed” status. B.R.I.C. is an acronym, which refers to one of the biggest and fastest growing emerging markets of Brazil, Russia, India and China. Some experts believe these countries may turn out to be the four most leading economies by 2050. Their rationale behind this theory is that these countries embrace over twenty-five percent of the world's land coverage, forty percent of the world's population and their rich natural resources. Today, China is the second largest economy of the world, after the U.S. Many companies invested in China because of the low manufacturing costs, which gained them a higher profit. In the world of finance there is a great saying that says, “With greater risks, come greater expected returns.”

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