Bric Analysis

Executive Summary In 2003, Goldman Sachs, a leading investment banking company published a report on the future of the world economy. According to the report, the BRIC countries will become leaders in the economic powers of the world by 2050, with the USA and Japan amongst the six largest economies of the world. The forecast predicts that BRIC will show higher returns, increased demand for capital, and stronger national currencies. The research that has been conducted on these countries will (1) reveal the country ratings for risk, (2) business environment opportunities, (3) condition that contribute to the country ratings, and (4) a thoroughly examination of the GDP, PDI, exports & imports (in US currency) for 2011 and 2015. The goal of country risk measures is to forecast political or economic events in a country that may, “affect the business climate in such a way that investors will lose money or not make as much money as they expected when the investment was made” (Howell, 1998). Based on the findings of the country assessment analysis, StrataGEM will select a country that has strong characteristics in macroeconomic performance, long term growth projections, technological innovation, sustainable growth, human capital, and infrastructure, protection of private property, economic freedom, and quality of governance. These elements are critical aspects of the selection criteria process. As the qualitative context of each component is essential in formulating a global decision will be influential to the financial stability of the MNE.

Introduction StrataGEM has been charged with selecting one of the BRIC countries for a new multinational enterprise to purpose business opportunities. Based on the analysis, the team will make a recommendation that is most appropriate and financially beneficial to the company.
Country Risk Assessment and Business Environment
Table 1. Country Risk and Readiness Ratings Brazil is considered to have