Goldman Sachs Has Come Up Case Study

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There are various investment options for Goldman to consider. It can be land, industries, corporations, educational institutions, healthcare facilities or even a research centre for that purpose. Options are numerous for investment. As of the Bric, if they attempt on improving the law and order situation, corruption, rate of crime and respect for democracy & human rights, a huge number of investors would be interested in investing in their country. This way country will progress even more and development would not remain a distant dream. But if together with these countries, few other countries are also taken into consideration and included in the strategy, it is possible to get far better results. These countries would include Mexico and South Korea as this would increase the chances of success and will also prove to be a source of benefit in the long run.

It is possible to give incentives and initiatives to these countries before investing in them. This may include plans and schemes which assist in increasing population, or the pre-requisite of friendly relations with neighbours and also supremacy of human rights laws. This would prove beneficial for the organization and would also enhance the stability of these countries. This will also assist in solving their internal problems a great deal.

It has been stated that this acronym is used merely for the emerging markets of these countries and they do not have any kind of link; socially, politically or economically. But these countries have no incentive or need for working together as a bloc in the world affairs. If they took the initiative and started working together on large-scale, benefits could be numerous. China is the world's largest economy and it therefore is one of the largest markets pervasive in this world. It shows potential and promise for the future.

At times it has been suggested that China is the most important part of this Bric. Due to the reason most of the growth, development and progress has and is happening in China. Without China, Bric would not be something as significant as it is, today. However, Brazil has also shown promise. Due to its functional democracy and the safety of property rights & the law of free trade, it can be described as the backbone of Bric. It does not have any kind of issue with its neighbour countries and neither does it have a nuclear bomb. It is also free of population problems

(Tett, 2010)According to the predictions and the vision of Goldman, the countries which are struggling with quite a few major issues, internationally and domestically, are going to be the strongest economies in the coming times. This is the reason why investment is a good option in these countries. These countries include the Bric section usually because other countries have a long journey to undertake before being considered as emerging markets. Despite all the problems, the investment in these countries is not as expensive as it is in the western markets. Another major reason for this is that the prediction of Goldman states that the few economic powers are going to emerge from Asia and they will be the economic supreme powers. It has been predicted that these countries are not only emerging markets but their future also seems to be promising because of the recent progress being demonstrated by them in various sectors of business and investment.

(Salva, 2011) has stated that Bric is the brainchild of O'Neil and it was his vision that the countries in the region of Asia will emerge as successful markets and will also prove to be more stable economically than the western opponents.

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He also predicted that the countries of Bric i.e Brazil, Russia, India and China will have a better economy, stable democracy and more development and progress than ever before. This is the reason why he deemed it important to venture into new areas like Asia for investment purposes. But there are quite a few hurdles in this path of success. India has got issues with their neighbour and that is responsible for economic setbacks.

It also is responsible for the lack of security. If the security problem is solved and friendly ties with neighbours are made, India would be a good market to invest in. China and Russia have still not accepted the need to recognize and implement human rights rule in their countries and that is a major problem. Because of this, lots of problems arise and due to these problems, financial setbacks become inevitable. The population problem of Russia and China has to be dealt with hands-on otherwise it will affect not only the economy and development of these countries but also the entire global market. It cannot be stated that these emerging markets do not have any kind of setbacks or chances of failure. Like all the countries, their future cannot be predicted if they have shown success in a few areas. For them to emerge as potential markets, it is imperative that they recognize, accept and deal with their problems as opposed to ignoring their existence completely.

Brazil has failed to live up to the expectations of its investors from a long time. However, the potential for development and progress has now been recognized and utilized. Social, economic and political rules and regulations have been introduced which have solved the unemployment problem to a great extent. These rules encourage investment and the proof of probability of getting better returns also exists today. Henceforth it can concluded that minus all these predicaments, if they are solved, the prediction of O'Neil holds maximum strength and it will come true by the year of 2050 or 2039.

Appendices

BRICS AND BEYOND" - Goldman Sachs study of BRIC and N11 nations, November 23,

Statistics

Categories

Brazil

Russia

India

China

Area

5th

1st

7th

3rd

Population

5th

9th

2nd

1st

Population growth rate

107th

221st

90th

156th

Labour force

5th

7th

2nd

1st

GDP (nominal)

8th

11th

10th

2nd

GDP (PPP)

7th

6th

4th

2nd

GDP (nominal) per capita

55th

54th

137th

95th

GDP (PPP) per capita

71st

51st

127th

93rd

GDP (real) growth rate

15th

88th

6th

5th

Human Development Index

73rd

65th

119th

89th

Exports

18th

11th

16th

1st

Imports

20th

17th

11th

2nd

Current account balance

47th

5th

169th

1st

Received FDI

11th

12th

29th

5th

Foreign exchange reserves

7th

3rd

6th

1st

External debt

28th

24th

26th

23rd

Public debt

47th

122nd

29th

98th

Electricity consumption

9th

4th

5th

2nd

Number of mobile phones

5th

4th

2nd

1st

Number of internet users

5th

7th

4th

1st

Motor vehicle production

6th

19th

7th

1st

Military expenditures

12th

5th

10th

2nd

Active troops

14th

5th

3rd

1st

Rail network

10th

2nd

4th

3rd

Road network

4th

8th

3rd

2n

Predictions for the future

Gross Domestic Product 2006 U.S.$ billions

Rank 2050

Country

2050

2045

2040

2035

2030

2025

2020

2015

2010

2006

1

China

70,710

57,310

45,022

34,348

25,610

18,437

12,630

8,133

4,667

2,682

2

United States

United Kingdom

5,133

4,744

4,344

3,937

3,595

3,333

3,101

2,835

2,546

2,310

10

Germany

5,024

4,714

4,388

4,048

3,761

3,631

3,519

3,326.....

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