BRICS_reading

Question 1

Many BRICS countries’ companies have profited from globalisation. What difficulties do they still face [three diffculties]?

Answer 1

1. It is difficult for them to diversify into new sectors
2. They have difficulties in promoting more innovation
3. They lose with companies from developed countries when it comes to** promoting global brands**

Question 1

One of the drawbacks of globalisation is macroeconomic fragility. How are the BRICS dealing with this issue?

Answer 1

They created their own **New Development Bank **- and alternative to the IMF

Question 1

What does the IMF stand for?

Answer 1

International Monetary Fund

Question 2

Provide explanations as to why each country would join BRICS:

Answer 2

a) China - to strenghten its economic influence, rather than being singled out in unilateral actions

b) Russia - they have problems with postsoviet republics, they need alliances + they want new markets to sell their resources

c) Brazil - they are only a regional power, now they want do expand

d) India - India wants more political recognition globally

e) South Africa - they need investments

Question 3

Describe THREE general sources of conflict within the BRICS.

Answer 3

1. BRICS countries are competitors in global trade
2. They fight over influence in Africa
3. Three of them want to be strategic powers in Asia

Question 4

Give one difficulty and one strength of BRAZIL

Answer 4

PROBLEM: corruption, inequality, low growth
STRENGTH: solid agriculture, diversified economy, secure in terms of energy

Question 5

RUSSIA: one strength one difficulty

Answer 5

PROBLEMS: they rely on global prices of gas and oil; War in Ukraine = diplomatic isolation
STRENGTH: *highest income per capita in BRICS

Question 6

INDIA: one strength - one difficulty

Answer 6

STRENGTH: offshoring and outsourcing leader, especially in IT and customer call centers; youthful population, good demographics
PROBLEMS: huge gap between urban and rural areas [dual economy]; poor transport infrastructure

Question 7

CHINA: one strength - one difficulty

Answer 7

STRENGTH: 1. World’s biggest manufacturer 2. They have huge amount of foreign exchange reserves 3. Dollars to invest abroad, possibly a lot of companies will become TNCs

PROBLEMS: overheated economy (for example the real estate market); human rights