Essential guidance on economics exam technique:
A2 Macroeconomics / International Economy
International Trade - BRICS
BRIC is a term used to refer to the combination of Brazil, Russia, India, and China – and, according to a major piece of research from Goldman Sachs, a US investment bank, these are four countries that are likely to become major if not dominant players in the global economy over the next twenty to thirty years. The Goldman Sachs forecast for size of GDP is as follows:
2000-05: BRICs contributed 28% of global economic growth
The new workshop of the world – China
A huge amount of discussion has been generated in recent years with the phenomenal growth of the Chinese economy. The basic statistics of her growth are staggering although such rapid expansion in output and investment is inevitably creating social, environmental, economic and political pressures along the way. Production of factory goods in China has surged by 5-10 per cent a year for over a decade and China now contributes an estimated seven per cent of global manufacturing production. Since the mid 1990s, nearly £280 billion of foreign direct investment has found its way into the Chinese economy. China has developed a huge comparative advantage in the production of motherboards for personal computers and in many other areas of manufacturing, the economy is poised to reap the benefits of high foreign direct investment and a large jump in spending on research and development. R&D spending in China increased from just 0.6% of GDP in 1996 to 1.1% in 2001.
China joined the World Trade Organisation in December 2001.
Suggested reading on the Chinese economy:
|Author: Geoff Riley, Eton College, September 2006|
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