Seminar: Meet the BRICS

Topic Number:6

Principles of Business

2

Overview

The economies of Brazil, Russia, India, China and latterly South Africa are amongst the high growth countries of the world. Yet doing business in these nations has its considerable challenges due to the economic, political, social and business environment.

In this seminar we will give consideration to these issues and look to see how organisations overcome them.

We will focus on answering:

● What indicators might companies monitor to guide their investments and actions in these countries?

● What are the implications of the emergence of the BRICs for careers and companies in your country?

● Consider doing business and its challenges in the BRICs

● Identify some of the key FDI trends that are taking place in the BRICS (inflows and outflows)

3

Learning outcomes of this seminar

• Determine the key KPI’s that companies would monitor to guide their investment decisions

• Critically evaluate and articulate the impact of the BRIC’s on careers and companies in your country

• Determine and highlight the obstacles and challenges companies may face when doing business in the BRICS

• Describe some of the key FDI trends that are taking place in the BRICS

Agenda for this seminar

What are the implications of the emergence of the BRICs for careers and companies in your country?

Consider doing business and its challenges in the BRICs

Identify some of the key FDI trends that are taking place in the BRICS (inflows and outflows)

What indicators might companies monitor to guide their investments and actions in these countries?

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

The BRICS

http://cuts-international.org/BRICS-TERN/pdf/BRICS_and_the_World_Order-A_Beginners_Guide.pdf

Overview of BRICSO

verv

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Sha

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Glo

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Overtaking the G6 by 2040

Source: Goldman Sachs, 2003

And by 2050…

Source: Goldman Sachs, 2003

What indicators might companies

monitor to guide their investments and actions in these

countries?

Key Indicators

GDP

GDP per Capita

Key Indicators

Population

Birth Rate

Key Indicators

Literacy

Inequality

Key Indicators

FDI

Ease of Doing Business

What are the implications of the emergence of the

BRICS for companies and careers in your

country?

Consider the principles of supply and demand

Source: Goldman Sachs, 2003

An opportunity and threat for business?

• Presents ability to reach untapped markets for growth

• Provides investment opportunities (Direct & Indirect)

• Sources of new capabilities/resources and insights (global cross-fertilization)

• Source of cheaper labour leading to a more efficient supply chain

• Increased sources of investment & funding i.e. BRIC companies investing in developed market companies

• Ability to produce goods and services cheaper

• Increased competition

• New innovations entering developed markets

• Risk of leap-frogging due to proximity to fast moving economies

Opportunity Threat

Impact on careers? Increased opportunities increased competition

• Globalisation enables free flow of personnel

• MNE organisations enable internal transfers

• Doing business abroad easier i.e. gain more exposure and knowledge

• Increased competition for a consolidating world

• Outsourced model threatens job security

• Low wage countries cause a threat to jobs in developed countries

Opportunity Competition

An example from BP

View video: http://www.bp.com/en/global/corporate/careers/students-and-graduates/global-graduates.html

Consider doing business and its challenges in the

BRICs

Ease of Doing Business in the BRICS

Source: World Bank, 2013

Ease of Doing Business in the BRICS

Source: World Bank, 2013

Ease of Doing Business in the BRICS

As you can see the BRICS are not the easiest place to do business

Each BRIC have their own complexities

Source: World Bank, 2013

Identify some of the key FDI and trade

ends that are taking place in the BRICS

(inflows and outflows)

Key FDI Trends

Share of Global FDI

Source: World Investment Report, 2013

Trends in BRICS co-operation

Source: World Investment Report, 2013

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013