Canadas investment in the BRIC nations Essay Example | Topics and Well Written Essays - 3000 words

Canadas investment in the BRIC nations - Essay Example The global competitive advantage is likely to shift from the west to east (Mpoyi 1-12), that is from Canada and other European countries to Latin America and Eastern Europe. This is due to the projections in Sach’s reports that the BRICs real exchange rate could appreciate annually by an average of 2.5%.For Canada to be on a safer economic side, it needs to consider expanding her investment and increasing its business operations in the BRIC nations. Additionally, if Canada doesn’t act on time it might be swept by the shift of global competitiveness from the west to the east, which is fast approaching.However, before Canada considers expanding its business and increasing her investment in any of the Golden BRICs nations, both the strengths and weaknesses of each of these countries need to be considered and evaluated as below.BrazilThere have been a lot of controversy whether Brazil deserves to be seen as an economic powerhouse as portrayed in the BRIC with its weak econo mic growth in question. According to Pereira (1), it is evident that Brazil’s weaknesses surpass its strengths by far. However, it would be premature to disqualify it from the BRICs nations due to her potential in growth in the near future.  WeaknessesPereira(1) notes that the rate of growth in Brazil was only 3% in 2013, which is quite low, compared to that of China and India which was approximately 8% and 6% respectively. Additionally, in the year 2011 and 2012, Brazil grew by 2.7% and less than 1% respectively (Pereira 1).