SP 3.2 - The BRIC Flashcards
Why is the BRIC formed?
It’s an alliance formed to create more political power & not only economic power along with to reduce the influence of western dominance e.g. IMF, WTO & other global decision making bodies
Why did these 4 countries join and not any other countries?
This is because Russia & Brazil have similar trade profiles & are major commodity exporters. Whilst China & India require these resources to emerge as industrial giants exporting these goods & services —> quadrilateral trade
How much is the annual GDP of the BRICs put together?
$1 trillion
What percentage of the global economy’s do the BRICs share together compared to UK & US put together?
The BRICs = 23.5%
whilst
UK + USA = 23.6%
How did they decide to stop making the US dollar the global reserve currency?
By signing an agreement to grant each other loans in their national currencies & not dollars
What criticism levelled against the chance for the BRICs to make fundamental changes to the worlds geopolitics?
They lacked coherence and contrasting political systems ( 2 are authoritarian & 2 are democratic), so will have different individual ambitions
What is the common interest in the 4 countries?
Reforming the IMF & developing a radical approach to changing the existing world economic order
What are the threats to prosperity with the rise of the BRICs
China is producing cheap food/clothes & electronics & we depend on these stuff. Furthermore, the continued outsourcing of e.g. Apple R&D means a threat, along with credit crunch rescues show vulnerability
What is the threat to the global currency?
They are planning on replacing the dollar with another currency & replacing the IMF bonds! Plus they are recovering a lot quicker from the recession than the west.
What are the threats to the global industry?
US car companies are brought by China e.g. European Volvo by Geely.
British steel by Tata. Reducing the influence of UK & US
What are the threat to space discovery by the rise of the BRICs?
Russia & US raced against each other on going to the moon first, & US won!
Now we have China aiming for the moon, whilst the US shuttle programme got cancelled.
What threats to the BRICs bring to the airline industry?
Brazil Embraer is competing against the Airbus & Boeing
How serious are these threats?
It depends on how much hard economic power the BRICs gain & how symbolised they become in the world!
What countries make up the BRIC
Brazil, Russia, India & China
