China Outraces Brazil, Russia, India in Economic Growth

Abstract

According to this analysis, it appears China is the leading country among emerging markets of BRICs. The country utilizes a transformational leadership style on different levels and shows the steady growth and the crisis of 2008 left the country almost intact. The BRIC countries remain attractive for foreign investment through Russia is losing attractiveness due to sanctions imposed.

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Analysis and Results

It is possible to state that the emerging markets or the so-called, BRICs have been growing continually though the growth was quite different from country to country. China has proved to be the most successful economy as it had the lowest rates a decade ago but now is the leader among BRICs (Goldstein, 2013). At the same time, Russia is lagging due to external as well as internal factors. However, it is possible to note that the three BRIC countries are prospective emerging markets attractive to investors worldwide.

It is possible to state that production in China, which is one of the criteria of development, skyrocketed after 2008 while other countries show modest development and the Russian production rate is decreasing (Matsumoto & Rousset, 2014). The next criteria are GDP growth which is also increasing steadily suggests that the emerging markets remain attractive for international investors. The global crisis of 2008 negatively affected BRICs’ development though it did not have detrimental effects and the countries continued their growth.

As far as foreign investment is concerned, China has received the least amount of direct investment (though after sanctions have been imposed, Russia is getting the least investment). Marino (2012, p. 8) notes that foreign investment flows “provide countries with capital for investment beyond the country’s bank deposits”. Therefore, it provides more growth opportunities domestically. Remarkably, China has been able to sustain its growth with limited direct investment flows, which can be explained by the use of a particular type of leadership. The leadership type will be discussed below. Again, it is necessary to note that Russia is getting quite insignificant investment flows due to the sanction of most international partners.

It is also important to note that population growth has had a profound effect on the development of the BRICs’ economies. China and India show steady population growth and are attractive for further investment as they have millions of prospective workers, employees, and customers. Admittedly, numerous companies tend to enter new markets. Brazil is still a perspective market though the population is much smaller as there is certain growth. As for Russia, the population of this country does not grow and this can be compared to a certain decrease as the other countries show steady population growth. Therefore, it is possible to state that Russia may become less attractive for direct investment in the nearest future.

As has been mentioned above, Chinese business people, as well as officials, have employed an effective leadership style that may account for the country’s growth compared to other BRIC countries. Transformational leadership used as the common approach has enabled companies to rapidly adjust to conditions of the global market (Ghosh, 2011). China has become the leader among the other emerging economies due to the effective use of transformational leadership. People get continuing training and companies as well as individuals are open to new experiences. They eagerly employ the successful experience of other countries and try to focus on the development of their economy creating favorable conditions for domestic companies and foreign investors.

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Reference List

Ghosh, J. (2011). Model of BRICs’ economic development and challenges for EU competitiveness. Washington, DC: Thomas Nelson Inc.

Goldstein, A. (2013). The political economy of global business: The case of the BRICs. Global Policy, 12(2), 162-172.

Marino, R. (2012). Submerging markets the impact of increased financial regulations on the future growth rates of BRICS countries. Basingstoke: Palgrave Macmillan.

Matsumoto, A., & Rousset, M. (2014). Quarterly review of commodity markets. Web.

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Paperroni. (2021, November 3). China Outraces Brazil, Russia, India in Economic Growth. Retrieved from https://paperroni.com/china-outraces-brazil-russia-india-in-economic-growth/

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"China Outraces Brazil, Russia, India in Economic Growth." Paperroni, 3 Nov. 2021, paperroni.com/china-outraces-brazil-russia-india-in-economic-growth/.

1. Paperroni. "China Outraces Brazil, Russia, India in Economic Growth." November 3, 2021. https://paperroni.com/china-outraces-brazil-russia-india-in-economic-growth/.


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Paperroni. "China Outraces Brazil, Russia, India in Economic Growth." November 3, 2021. https://paperroni.com/china-outraces-brazil-russia-india-in-economic-growth/.

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Paperroni. 2021. "China Outraces Brazil, Russia, India in Economic Growth." November 3, 2021. https://paperroni.com/china-outraces-brazil-russia-india-in-economic-growth/.

References

Paperroni. (2021) 'China Outraces Brazil, Russia, India in Economic Growth'. 3 November.

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