BRICS Nations

What do you mean by BRICS nations?

BRICS i.e. Brazil, Russia, India, China and South Africa; are the emerging nations .These economies are developing very aggressively to become the developed economy.
Emerging nations are those developing nations which are going to become the new destination of the business houses and emerged as the industrial nations.

As in the emerging market; local governments provide a lot of facilities easily to the new companies. These emerging markets make their policies to attract more and more foreign investment.

Benefits to the company from the investment in emerging markets

·         Land is easily available at appropriate place and price.

·         Labor cost of these countries is also very low.

·         Tax rate is low for the investment in industrial areas.

·         As the growth rate of these countries are higher, so purchasing power of the population is increasing day by day.

Benefits to the nation from the foreign investment

·         Development of Infrastructure

·         Transfer of technology

·         Employment generation

·         Increase in the stock of foreign currency

·         Living standard of the population is improved

If we want talk about the GDP growth then, it is found that growth of these emerging nations is better than the GDP growth of the developed one. As the growth of these emerging countries is also affected by the euro zone crisis but effect is less in comparison to developed countries.

These emerging markets are also ready to give better return to their stock and bond investors.

We can take the example of India: Good ‘A’ Grade corporate bond in India is ready to give 9% yield, which is much better than the yields on the bonds which are issued by the developed countries.

So, BRICS nations are advisable for the investment purpose.