Term Paper: Doing Business in BRICS Nations
BRICS countries representing Brazil, Russia, India, China, and South Africa are emerging economies that make up approximately 42% of the world’s population and 27% of the global GDP. With the increase in globalization and the interconnectedness of nations, businesses, and people, your challenge this semester is to choose one BRICS country to research for your term paper.
For this assignment, you will act as an international business consultant offering advice to an (imaginary) American company called SOLA that produces self-driving solar powered vehicles. The company uses innovative 3D printing techniques to produce the cars that are priced at 10,000 USD. The cars have a range of 100 miles per charge and are small in size, fitting only two people. The interiors are basic providing minimal comforts yet have high safety standards by integrating proprietary artificial intelligence software.
The company is looking to expand overseas in a BRICS nation and is relying on you to give them the best advice for successfully doing business abroad. You’ll start by choosing a BRICS nation, then address each section of the term paper in a way where you are speaking to the CEO and executive team at SOLA.
Part 2: Government and Trade
1. Trade Relationship between CountriesAssess the historical and current trade relationship with the BRICS nation and the United States. Describe the balance of trade in goods and services between the two nations, it’s growth or decline, and its potential to be an area of conflict or cooperation. Evaluate how the BRICS and USA governments support or impede trade between one another by using free trade agreements or interventionist policies. Explain the rationales for doing so and estimate how this may affect SOLA’s success in the BRICS nation.
2. Financial EnvironmentAnalyze the historical and current exchange rates between the BRICS nation and the United States. Determine if the currencies are floating, fixed or pegged. Explain how currency fluctuations can impact the profitability of SOLA’s operations. Which financial tools and exchange instruments do you recommend SOLA uses to mitigate currency risk?