Bric is a name that stands for combined economies of Brazil, Russia, India, and China. According to Elango (2019), these countries’ economies are collectively known as the Brick nations or the Brick economies and sometimes the big four. Currently, the BRIC nations represent almost 25 percent of the land mass of the world’s land, as well as 40 percent of its population. Economists believe that the four nations are dominant suppliers of services, raw materials and manufactured goods by 2050 (Elango, 2019). Respectively, India and China will become the dominant suppliers in the economy of the world for manufactured goods and services while Russia and Brazil are likely to become dominant in the supply of raw materials.
The growth that the economies will have will be as a result of production and lower labor profits. The initialization of the BRIC nations expanded to include South Africa as the fifth country in 2010. Many organizations acknowledge the BRIC states as sources of foreign expansion. Foreign expansion of businesses occurs in nations that have promising economies that they can invest in.
The BRIC nations have registered great growth in global dominance. In 1990, the big four accounted for 11 percent of GDP. BRIC nations were originally projected to become the fastest growing economies in 2001 by Jim O’Neill (Villareal & Fergusson, 2017). BRIC states have not yet announced any formal trade agreements even though leaders attend summits together regularly where they act in concert with the business interests of each other. It is postulated the BRIC economies will probably be wealthier than many of the current major world economic powers.
Differences between BRIC Economies and NAFTA
While the main purpose of BRIC is to cooperate between the member states for development, provide financial assistance, infrastructure and supporting various projects, NAFTA’s purpose was to inspire economic activities (Wu et al., 2017). While BRIC comprises of Brazil, Russia, China and India, The North American Free Trade Agreement is a trade agreement between the United States, Canada, and Mexico. According to Villareal & Fergusson, (2017) when NAFTA was formed, it was believed that it would create more than a hundred thousand jobs in two years and a million jobs by five years since the exports played a major role in the growth of the economy of the United States.
Additionally, BRIC differs from NAFTA in that the BRIC countries are different both when it comes to their resources in terms of their values and their goals. China and Russia are not democratic while India and Brazil are democratic (Wu et al., 2017). United States, Mexico, and Canada are three major powers of North America. Some projects have been able to show that trade between Mexico and Canada is equal to the trade between Korea and Japan combined.
Elango, B. (2019). A bibliometric analysis of the literature on engineering research among BRIC countries. Collection and Curation, 38(1), 9-14.
Villareal, M., & Fergusson, I. F. (2017). The North American Free Trade Agreement (NAFTA).
Wu, R., Geng, Y., & Liu, W. (2017). Trends of natural resource footprints in the BRIC (Brazil, Russia, India, and China) countries. Journal of cleaner production, 142, 775-782.