impact of emerging markets on global economy

Discussion in 'Economics' started by zhn123, Dec 10, 2008.

  1. zhn123

    zhn123 Guest

    I was wondering what impact the emergence of the BRIC countries (Brazil, Russia, India and China) and emerging economies in general has on the global economy.

    My list so far:
    * these countries have become the "engine" for growth in the global economy
    * increased commodity prices (e.g. oil and metals) due to growing demand from emerging economies
    * as these economies grow, labour costs in these countries rise because of improving standard of living, making them less attractive for foreign direct investment that seeks efficient production
    * consumers in these countries have growing incomes that make them potential customers for a wide range of consumer products that come from developed economies
    * especially in China infringement of intellectual property rights, resulting in cheaper versions of the products that are popular in developed economies

    What other effects are there?
    Do you agree with my (short) list?