The evolution of economy of BRIC is very impressive. They are in the speedy growth of their end user markets. (Experience indicates that consumer demand takes off when Gross National Income per capita reaches levels between $3,000 and $10,000 per year.) From 2000 to 2008, the BRIC countries' combined share of total world economic output rose from 16 to 22 percent. Together, the BRIC countries accounted for 30 percent of the increase in global output during the period. As BRICS observed as emerging market, many investors recognize the potentially attractive return characteristics and diversification benefits of this asset class. However, most pension plans and other institutions currently ...view middle of the document...
Due to lower labor and production costs, many companies also cite BRIC as a source of foreign expansion opportunity. Developing countries like us may face challenged and higher stresses in the labor
Market and the declining cost competitiveness of their countries’ companies. Students from
Bangladesh may be encouraged because their states variety and compete for the investment capital and those business actions that lead to important monetary growth and the increasing
International competitiveness of our countries’ firms. Nevertheless, there is sufficient scope
Of comparative advantage in our country
With the economic performance and potential of the BRICs, There may be some uncertainty. In principle, observe note the endemic problem of newness bias, which is the dubious expectation that the current trend will continue into the future. Repeatedly, companies, executives, investors, and officials extrapolating the present into the future have made mistakes. Here are a number of qualitative issues that investors must consider when contemplating an allocation to emerging market equities. One of the most decisive factors is liquidity, as plan sponsors may shy away from markets with lower volume and smaller market caps. Many of these issues are incorporated in the classifications of MSCI Emerging Markets Index, which consider economic development, size and liquidity requirements, and market accessibility. Per MSCI, market accessibility integrates qualitative measures reflecting the investment experience of international investors in a given market, focusing on liberalization, level playing field, and competitive landscape information flow, and stability. In addition, emerging markets may involve a multitude of other political, social, legal and regulatory risks
However, we believe the best active managers may be able to identify opportunities in smaller markets, and build portfolios that are more diversified than the index. As such, manager selection is critical given the volatility in the asset class and wide dispersion of outcomes. In all, we believe institutional investors should consider establishing or increasing allocations to emerging market equities. Managers might interpret the potential for their product in a market. If there is innovation in the interaction with other firms and with knowledge infrastructure including universities and technological institute’s .so that it can clarify the specialization, and competitiveness .Growth performance can also go a long way
Macro stability, institutions, openness, education is the indicator of economic growth. If one of the BRIC...