BRIC & Emerging Markets

Question 1

Emergence of emerging market

Answer 1

1. Population shifting away from agriculture
2. Rising share of world exports
3. A rapid movement of GDP per capita (wealthier population)

Question 2

Birth of BRIC

Answer 2

2001 (Jim O’Neill)

Goldman Sachs - Global economics paper 66

Question 3

Characteristics of Emerging markets

Answer 3

• dealing with countries undergoing very rapid GDP (or income) growth
• rapid growing income per capita (wealthier population, demand more supply, market growth)
• liberalization of investment policy (change attitudes towards foreign businesses - open/welcoming)

Question 4

Concepts of EM that were popular…

Attempts of GS to reintroduce concept of EM

Answer 4

• growth markets
• N-11
• MINTs

Question 5

Concepts that popularized EMs

Answer 5

• 1964, OECD: Newly industrialized countries
• 1980s-90s, Antoine van Agtmael: Emerging economies
• 1979, Heenan and Keegan: third world multinationals