From joint ventures to independent investment strategies of entering the markets of BRIC countries
Journal Title: Acta Economica - Year 2012, Vol 10, Issue 16
Abstract
The first decade of the 21st century was characterized by signifcant socio-economic and political changes and rapid technological progress on the global level. Among these changes gradual and steady shif of power from Triade countries to so called BRIC countries stands out. BRIC countries make more than 40% of world population, more than 25% of global GDP and contribute to the growth of global GDP by 30%. According to the mid-term prognosis of all the eminent research institutes and consulting agencies BRIC countries will continue their growth, which will increase their economic and political influence on the global level. Multinational companies (MNC) see BRIC countries as an opportunity to expand their businesses since, until recently leading markets of Triade countries are now depicted by sharp competition and low growth rates. Nevertheless, the institutions in BRIC countries are relatively inefcient and specifc which makes MNCs modify the business strategies they apply in their home markets. At frst, MNCs gave huge advantage to joint ventures with local partners over individual investments. Yet, over the past few years the number and value of individual investments have increased significantly due to valuable past experience in the new business environment. BRIC countries are expected to attract more foreign direct investments in the form of individual projects in the future.
Authors and Affiliations
Бранко Ракита, Душан Марковић
Keywords
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