The BRIC nations have been causing quite a stir worldwide. They comprise of Brazil, Russia, India and China. The main reason they are causing a stir is because despite the global or worldwide recession, these economies are doing fairly well. The whole world is suffering from shocks of the recession that has hit it more severely because of the strong inter reliance of economies upon each other in the world of today, but despite this fact, the BRIC nations are progressing well and have not suffered the same fate as most countries around the world have. With BRIC economies breathing healthily in such an environment, their members are being showered with increasing opportunities for business and suddenly every businessman’s interest turns towards the prices these countries offer for goods and the India price for commodities is competing well.
Manufacturing constitutes a significant part of any business and is the backbone of any economy. The price of manufactured goods is something that can really put an economy out there and help it achieve levels of success that were previously unimaginable. Countries like India, which have a serious agricultural background can really offer competition in this area of the market because if they can grow cheap goods, than this cost saving can carry on to provide a cheaper India price for any manufactured good that the country produces. There can be numerous goods an economy manufactures and as demand increases, so does the profit margin for producing any given good and it is a basic economic concept that the more production that is done, the cheaper it will cost or in other the words; the cost of producing one unit is much higher than the cost of producing ten.
Low costs of production also offer a serious advantage in the market place. For example if the Indian price for a commodity is cheaper than the Chinese price for the same commodity, the Indian product would be bought, similarly if the Indian price was higher, the Chinese commodity would be purchased. Every nation must quote a price for every commodity it produces and that allows consumers to know what they must pay to purchase a product. But one thing must be kept in mind and that is; it is not just beneficial for say the Indian price of a commodity to be low, the product must also provide a level of quality otherwise the competitive edge may be lost.
Tips and comments
Indian businessmen have really brought the country’s economy and made it sky rocket through their entrepreneurial abilities but the low Indian price of manufactured goods cannot be attributed to them alone as the operation of any good economy requires a strong public and private partnership and it is no doubt that the Indian government is a strong advocate of trade and commerce, with their current prime minister also an ex finance minister. India is a great place to invest and start something fresh. It is still a cultivating ground which has shown some really promising returns which need to be taken advantage of quickly.