The BRICs is a coalition of Brazil, Russia, India, and China for economic purposes. These countries share economic views and boost each other economically. Looking at the prices of the BRICs countries and those ones of the US, one may notice significant differences. For example, the US tourists in India could see themselves purchasing more items with one US dollar in Indian stores compared to the US stores. The currency of India, rupees, lacks behind in value to US dollar. It was determined that the prices in India account for 35% of US prices. To understand these prices, one would need specialized skills in accounting. For example, a graduate of either CIMA or ACCA is well rounded to understand these.
CIMA online study can equip you with skills on how to calculate the prices of all BRICs countries relative to the US. The university of Pennsylvania CIMA and ACCA professionals have played a significant role in collecting the price data of the difference of prices that now some economists regard it as the Penn effect.
The price difference seems to be narrowing particularly in the biggest emerging economies. For the record, Brazil’s prices accounted for 40% of US prices a decade ago, but now account for 90%. Meanwhile, China is also closing that gap with the current 67% from 39% of US prices. On the other hand, Russia now accounts for 83% compared to 31% of US prices a decade ago. It is, therefore, apparent that the BRICs prices rise in relation to US prices. CIMA advanced accounting skills are required to better understand these price relations.
The GDP of the BRICs countries is emerging more than it was expected a decade ago. In 2003, 10 years ago, Goldman Sachs’ had projected the economic growth of BRICs for the upcoming 50 years. However, contrary to the projections, the BRICs economy has proved wrong the projections that were made in 2003. Compared to 10 years ago from 2003, the combined economies have performed well. There are economic and accounting factors that are accountable for these concepts. Study ACCA online to better understand clearly these factors.
The projections that were made by Goldman Sachs underestimated the BRICS economic growth. This economic growth increased faster than projected values. In relation to other BRICs countries, China continues to grow faster that it was expected. The BRICs prices have also grown much faster than the projections made by Goldman Sachs. As a result, the economic growth has resulted.
The BRICs economic growth can be attributed to the rising of their prices relative to the US. Also noteworthy is the strength of their currencies relative to the US dollar. China and Brazil have seen the strength of exchange rate compared to other countries.