Finance

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Global finance

Introduction

Today in the global economic scene , there is a rapid growth growth of CRIB (China , Russia India , Brazil ) economies which have significance to global economy (Berry , 23 . Looking back from history CRIB accounted 57 of and 50 of global population and income respectively . However this trend declined in 1970s to 40 and 11 holding in world population and income respectively . But today , the CRIB colony has different challenging figures in the world share of both global income and

population . Available statistics reveals that CRIB has a share of 40 of global population which is constant , while global income share has risen to 21 which is high and likely to go up (Berry , 56 . This positive dynamic exhibited not only indicates some aspects of the history , but also reveals the essential contours as far as economic affairs are concerned

Demographically , the world has over 6 billion people , whereby 2 .5 billion are within CRIB location and South Africa which accounts for 40 of the entire population , less that 1billion in industrialized nations and developing countries accommodates the rest equivalent to 49 .81 . In terms of economic share , CRIB cluster increased their share of world GDP from 7 to 9 , while the developing nations increased form 39 to 43 world GDP between 2000-2005 respectively . This is similar to purchasing power which follows the same trend due to increase in economic power but stagnant demographic trends

It is important to note that once a geopolitical region stabilizes in aspect of economy , it indicates that other factors are supportive and fairly doing well . In this connection China , Russia , India and Brazil cluster rapid economical growth do not only impact the economical environment , but also in political world . This because they are powerhouse in economical realm hence thy influence other countries economies to be dependent on them , investment , finance and trade through their engagement with the world in economical activities . However the importance does not lie in todays reality , but rather how today 's reality affects the future balance in political power and economical issues (Sierbert , 132

Looking into the Future

There is a common and simple notion that states between any two river or deep valleys , in to cross one must have a link to reach the other end . So is the notion applicable to the economical matters and their impacts in present times , traced from past and projecting the future . To connect future economic prosperity from the present economists need to extrapolate the economical events of today into tomorrow economical arena . Therefore it means that today events in the economics scenario are important and fundamental in future economic patterns and performance , which have a bearing on socio-political matters

At the current fast growth rate of China , Russia , India , Brazil and perhaps South Africa , US economy is in threat by 2050 . In fact most likely China and India alone at the current growth trend can possibly overtake US in terms of market share , GDP measured...