BRIC Nations

Brazil
Russian
India
China

Emerging market investors have emphasized the growth of these four countries so much that they have given them a special name: BRIC.

Hypothetically, these countries are on the brink of becoming fully developed countries and have large populations. Therefore, they are ripe for investment. When the US invests in other countries company's it is called FDI (Foriegn Direct Investment). Policy makers in BRIC countries compete for FDI by streamlining the investment process, giving tax-breaks to investors and middle men, and making infrastructure (ports, shipping, roads, airlines and regulation) more efficient to make FDI more appealing.

Each of the BRIC countries has unique advantages and disadvantages for FDI. Brazil has several advantages. First, it has some of the largest oil and natural gas reserves in the world. Brazil is also rich in coffee, soybeans and other natural resources. It has been de-regulating its financial sector since the 1970s and has a healthy stock market (the Bovespa). Brazil also has a large population that is focused on industrializing.
Brazil has several disadvantages as well. With a large population comes many challenges. The education system is poorly funded and does not specialize in a specific area. The government is involved in a lot of corruption. Inflation worries seem to haunt the Brazilian central bank and it is difficult for entrepeneurs to open a business. Overall, however, Brazil is poised for strong growth as it continues to focus on trade relations with China and the United States and continues to deregulate its economy.
Russia's primary strengths are its education system, natural resources and industrialized regions of the country. Impeding its potential for growth are bad relations with surrounding countries, unstable currency, inflation fears, and corruption in the government. Brazil has great potential for growth, but also is very risky due to the risk of default from the government that constantly drives investors away.
See future posts for Indian and Chinese strengths.