The BRICs stands for; Brazil, Russia, India, and china, which on spotlight as emerging economies. These four countries have been noted to have accelerating growth of their economies, posing opportunities and challenges to both developed and developing countries. In this paper I will focus on implications the emergence of BRICs to the Canada.
According to Rao (2008) report of the conference Board of Canada, “The BRIC countries (Brazil, Russia, India, and China) are anticipated to achieve significant growth and, as a consequence, much higher incomes over the coming decades” (p. 1). This implies that, there will be high demand of products and services from the BRICs. Canada therefore, being a developed economy should position herself strategically to benefit from this market. Rao (2008) continue to argue that, if Canada is to benefit from the opportunities posed by BRICs, it must improve its access to these emerging markets and strengthen trade and investment linkages with me (p. 1).
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Canada can tap many opportunities, which are attributed by BRIC emerging economies. There is an opportunity for Canada to exploit relative advantage of cheap production and services and sufficient availability of skilled, affordable labor found in BRIC countries. BRICs also are in great need of putting their infrastructure and other capital investment in place, thus opening business opportunities for Canada and other developed countries. Rao (2008) argue that “Canada should invest more in physical capital and become a bigger player I the foreign direct investment (FDI) market” (p. iii). Generally Canada and other developed countries can benefit from BRIC countries if they are innovative enough to produce new products, services and systems.
However, despite the mentioned benefits, which Canada can get from BRICs emerging economies, there are also some challenges associated with it. One obvious threat is lost jobs in Canada, as a result of many opportunities in BRICs which attracts most of human resources from developed countries.