Chapter 4: Case 2, "The BRICs: Vanguard of the Revolution" Flashcards
Just a refresher… What are the BRIC countries again?
Good heavens, child. Where have you been all semester?!
Brazil, Russia, India, China
What does it mean that the BRICs are the “vanguard” of the revolution of emerging economies?
Where they go, both good and bad, others will follow. Other emerging economies will use their paths as a precedent case for growth.
Why is it important to reach out to the “Base of the Pyramid?”
30 years ago, the BRIC countries were in terrible shape. But today, millions upon millions of citizens have been lifted above the poverty line. The more people jump that gap, the more they have to spend, and then they can choose to spend on brands rather than generic necessities.
What is a “black swan” event?
A large-impact, hard-to-predict, rare event beyond expectations that resets the “game” of economic growth. E.g. the collapse of the Soviet Union, the rise of the internet.
So everyone is going crazy about how awesome the BRIC countries are. But come on. They’ve gotta have some weaknesses/challenges, right?!
Right.
Russia- “vulnerable.” depends on energy and mineral exports for revenue. Also war tensions with the west are pretty upsetting.
Brazil- income equality is downright awful, productivity is meh, education is lagging.
India- Infrastructure shortfalls, “economic and political challenges.” (um, yeah textbook… duh. this whole chapter is on economic challenges…)
China- largely aged population (thanks to the whole one-child rule), environmental sustainability, rights of citizens, interpretation of rule of law
Also, what about GREEN INITIATIVES?! With all this economic growth and increase in consumerism, where’s the voice of the green people?
WE ARE HERE, WE ARE HERE! (Dr. Seuss reference, yes.)
Environmental issues are another challenge of globalization. Global warming, diminishing raw materials, and escalated pollution are real dangers of increasingly industrial environments.
Are the BRIC countries out of control?
Maybe that’s an exaggeration. BUT they ARE forming BRIC-only summits, and their currencies are dethroning the dollar. So that’s interesting.
