'Brics 'n' Mitsk'

'Brics 'n' Mitsk'

Introduction

Jim O Neill the main figure and economist who is responsible for bringing together four more countries to the term Brics that are South Korea, Turkey, Mexico and Indonesia. And there were other countries that were added to Mitsk that are Mexico, Indonesia, Turkey and South Korea among the unique four countries in order to develop a new group of growing markets. O'Neill states that “it's pathetic to call these four 'emerging markets'”. This innovative approach will also include new ways to look towards different measure of exposure towards the equity market and above the market capitalization, like looking towards the corporate revenue growth, the volatility of asset returns and gross domestic product.

Concept

This specific concept was developed 30 year back of the “emerging markets” by Antoine van Agtmael, the world economist. Just to change the more uncomplimentary “third world” tag. But according to O'Neill this term was not helpful anymore since it overcome countries that had a wide range of economic vision. Some of the emerging markets are small illiquid, but an economy through the emerging markets world that is previously one percent of the global gross domestic product or even more, and also the ability to rise, which has to be focused really seriously that was stated by O'Neill. South Korea and Mexico are held accountable for 1.6 percent of the global gross domestic product within the nominal terms, and Indonesia with 1.1 percent and Turkey with 1.2 percent.

O'Neill also defines the way he came up with idea of Brics in the year 2001, that took place right after Gavyn Davies, his colleague left who were also the co-head at the investment bank of economics. And the time when felt under pressure he had to come up with new ideas and O'Neill got inspired of the dreadful event that took place in the 9/11. The idea that came in his mind was that Americanization could not become globalization in the upcoming time, because for globalization to progress it need to be followed by more people, keeping aside the idea of the leading American philosophical and social structure and beliefs. The way O'Neill predicted that the Brics would go beyond the western economies of six largest that was primarily welcomed with uncertainty but the reality is that the idea was greatly accepted over all that also created a great impact and changed the life of O'Neill.

The Meltdown of Economy

The BEM (biggest emerging market) are adding towards the global economy more than ever with the proportion of the world stocks market reduces that leaves the investors with an extensive valuation space within 7 years. Brazil, Russia, India and China are the part of BRICs that comprises 20% of the world's economy this year even after developing more than four-folds within the past period, shown by the IMF. With in the same period, the mutual value of the stock market dropped 16 percent lower in three-year of the equities totally invested that was found in the data gathered ...