Nations that form BRIC bloc are those nations that are demonstrating potential to become developed countries. So is the case with the MINT bloc. These blocs constitute nations that have almost similar economic potentials. The blocs are created in economies to make it easier to analyze the economy of individual nations relative to other nations that have the same potential. It also generalizes status of a nation relative to others for easy comparison. China is one of the countries in the BRIC bloc. Analyzing the economy of China gives the general picture of the economies of other peer countries in the bloc. The economy of Mexico will also be analyzed to represent that of the other nations forming the MINT bloc. The economies of China and that of Mexico are compared.
BRIC is a terminology that is used in economics to refer to Brazil, Russia, India and China. These four countries have the same economic potential and therefore grouped together as a block. MINT is another acronym used in economics to refer to Mexico, Indonesia, Nigeria and Turkey. This bloc is also based on the economic potentials of these four countries. The nations that are making up a bloc are considered in terms of similarities between their economies. In terms of this classification, countries in the BRIC bloc are more advanced in terms of their economic advancements compared to those countries in the MINT bloc. However, neither of the countries has reached the developed nation state because they are lacking in some key parameters that define the developed nations. Nonetheless, all the nations in these blocs have potential to reach the developed nations status if they put up necessary measures to bring out what is lacking (Collins, D., n.d).
The Essay on Economy of China
China's economic history is very similar to its economic present as for as its intra-country economic commodities. About sixty percent of China's work force is agricultural, although only about fifteen percent of its land surface is suitable for farming and agriculture composes only twenty-five percent of China's gross domestic product. Its principal agricultural crops include rice, wheat, corn, ...
In economics, creation of economic blocs makes it easier to analyze the country’s economic potential in general relative to other nations that are either ahead or below the economic standards of the country in question. In this research paper, two countries have been chosen to represent their blocs in their economic analysis. Analysis of the economy of China will represent the BRIC bloc. Analysis of economy of Mexico will represent of MINT bloc.
Population
Currently, the population of China is estimated to be 1.392 billion (Banister, J., 2014, 242).
This translates to a population density of about 145 people per square kilometer. The country itself is so large to accommodate this large number of people. The large population in the Republic of China is very important in the economy. First and foremost, there is plenty source of labor from within its people. Besides, the labor is cheap. This makes industrial productions processes cheap. Secondly, this large population provides a big consumer market for the produced goods and services. This makes business favorable in such an environment. It is due to such a big population that China is ranked very highly in terms of imports. On the flip side, large population translates to very high rates of unemployment. Consequently, poverty levels become very high and alarming. There is too much pressure on the government to provide for such a population. At times, economic crisis occur in form of inflations. However, the Republic of China is very much ahead. By Western standards, China is a middle-income nation. It has managed to reduce the levels of poverty tremendously. To combat the ballooning population, China introduced a policy that every woman should only have one child (Banister, J., 2014, 244).
The policy was successful due to the rewarding practice that the government put in place to those who agreed to the policy. A foreseeable problem is that low birth rates and large population that is aged may bring about instability to the economy of China. It is projected that in the future, the population of China may end up declining. This may reduce the workforce available and the result will be declined production in the country.
The Term Paper on Us Economy And Economic Indicators
Daekwon the chef and Rza Shogun, Sergio Suarez, Sylvia Lin, Anne-Sophie Young Economics Final Report A Treatise on the Value of Economic Indicators The US Economy and Economic Indicators The United States economy is the strongest and the most affluent in the world. Besides having the highest GDP (Gross Domestic Product), the United States has a complex system of regulating economic policy and ...
GDP of China
The Gross Domestic Product (GDP) in China was worth 8230 billion US dollars in the year 2012 (Kravis, I., 2014, 45).
This value represents approximately 13.27 percent of the entire world economy. This is the highest GDP value achieved in the economic history of China. Forecasts suggest continued rise of the GDP value in the future. There has been a steady 10 percent increase in this value for the last 35 years. This explains why there are reduced levels of poverty in the country. Presently, there is estimated 7 percent of population living below poverty line which is 1 US dollar per day. Judging by the GDP, China’s economy is very much advanced compare to many of its peer nations. This makes China one of the giant economies in the region and predicted to grow to the level of a developed nation by the year 2050. The estimated GDP per capita is 3348.01 US dollars by the year 2012. The estimated GDP per capita purchasing power parity (ppp) in the same year was about 7957.62 US dollars. All these values are the highest recorded values recorded in the history of China. They illustrate steady rise in the economy power of China. As a matter of fact, China is the second largest economy by GDP.
Agriculture
China is the largest producer in the agricultural products (Rawski, E., et al., 2008, 68).
There is an estimated 300 million farm workers all working in the agricultural industry. There is maximum utilization of any arable land available. Consequently, it the major source of rice in the world. In addition, it exports lots of wheat, tobacco, millet, maize, potatoes, tea, soybeans, barley among many others.it also prides itself in exporting lots of vegetables and fruits. China has prospects of improving its agricultural industry and, therefore, increase its production. It hopes to do so through use of technology and fertilizers. The potential of this increase in production is evidenced by the steady increase in the production that has been observed over time. It is no wonder that the nation is ranked at position one in terms o farm production. Agriculture contributes 13% of the entire China’s GDP.
The Essay on Chinas Growing Economy
After North America, Europe, and Japan, the area of China, Taiwan, and Hong Kong "is a fourth growth pole in the world economy" (Jue 108) which in 1994 was expected to double in size by 2002. Today, the growth rate is still on track to fulfill that prediction. Recent Chinese economic policies have shot the country into the world economy at full speed. As testimony of this, China?s gross domestic ...
However, there are some problems that are facing the agricultural industry. Environmental problems such as soil erosion, floods and drought pose serious threats. Besides these natural calamities, some farmers in China still depend on simple traditional techniques. These problems affect the agricultural sector and subsequently, the entire economy of China. Although this has negative impact on the economy, ultimately it does not show any significant impact. This is partly because presently, agriculture is not the major contributor in the nation’s GDP.
Energy and mineral sector
China is self-sufficient in terms of energy production. It is estimated that China produces up to 80 percent of its domestic energy from fossil fuels. 17 percent of the energy is from hydroelectric power. Approximately 2 percent of the energy production is from nuclear energy. In other words, China has very great potential of energy. However, some of the potential sources of energy are yet to be exploited. Coal and oil form the most significant source of energy. Currently, China is shifting away from the coal as a source of energy because towards renewable sources of energy. As a result, the government has closed down several coal mines. China has abundant sources of electric
China is a great importer of the oil especially from the Middle East. Its net importation of crude oil is estimated at 20 percent of the total oil consumed in the country. Net imports are expected to rise in the future. This is an indicator of the fact that China has an expanded economy.
The mining sector
China’s mineral industry is very vibrant. There is extensive mining of coal, iron ore, crude petroleum, antimony ore, natural gas, nickel ore, tin concentrates, unrefined salt, vanadium, tin concentrates and tungsten concentrates. In addition, molybdenum ore is also mined in country. China has also produced lots of bauxite, gypsum, barite, magnesite, talc, manganese, fluorspar and zinc in the world market. Moreover, China produces lots of gold and silver into the world market. The mining industry accounts for about 0.9 percent of total employment in China.
China also supplements its domestic mining with importation of minerals from abroad. It imports iron ore from Australia and the US. China has also partnered closely with African countries such as DRC and Gabon to get mineral ores to enrich its mineral industry.
The Essay on Malaysian Economy Sector Economic Manufacturing
The Malaysian Economy: Booming The Economy: Following a period of severe and prolonged recession, the Malaysian economy has returned to growth aided by a relaxation of monetary and fiscal policies and by increased export demand, particularly in the electronics sector. While the world economic slowdown was more severe than expected and the unprecedented September 11 events in the United States had ...
Industries and Manufacturing
It is important to note that industry and construction sector is the backbone of the China’s economy. They contribute up to 46.8 percent of the country’s GDP. It is estimated that China is one of the highest producers of industrial products in the world market. In fact, it is ranked as the third nation in terms of its manufacturing output. In 2010, China’s contribution to the world market was approximately 19.8 percent of the total world manufacturing output. It falls as the largest manufacturing economy in the world.
The major industries in China are mining and ore processing industry, textile industry, machinery industry, petroleum processing industry, fertilizer manufacturing industry, food processing industry, automobile industry and manufacturing of other locomotive equipments including cars, ships and aircraft. In addition, China is a powerhouse in the manufacturing of electronics. It is leading in telecommunication services and information technology.
Due to Chinas’s strength in the indury sector, it has attracted establishment of many global manufacturing facilities in the country. This generates a lot of income for the country. In addition, the industries have created a lot of employment opportunities in the country. This way, poverty levels are greatly reduced. In addition, the problem of unemployment is curbed.
Tourism
tourism industry is also very vibrant in China and makes great contribution to the general economy (Legget, K & Wanacott, P, 2002, 63).
Tourism has contributed about 216 billion US dollars to the economy and this accounts for about 2.6 percent contribution to the GDP. In this industry, domestic tourism makes up to 90 percent of the tourism activity. This results to approximately 70 percent of the total revenue. Chinese business-travel spend is anticipated to be the highest in the world. This is a booster in the entire economy. Just like in other industries, tourism industry has created many employment opportunities and therefore contributed in the reduction of the poverty in the country.
The Essay on The Automotive Industry in Mexico and Brazil
The automotive industry in Mexico and Brazil is one of the most dynamic business in Latin America, with both countries are disputing the 8th place as the highest car producers in the world [a}. While the production of cars in Mexico is directed to foreign consumption, the Brazilian one is mainly directed to its internal and regional markets. Both countries offer several advantages, such as low ...
International trade
China has bilateral trading agreement with Hong Kong, Pakistan, Peru, Thailand, Singapore and Costa Rica. With these nations, China exports and imports goods and services at lower costs. There are no tariffs, import quotas, export restraints or any other trade barrier. In addition, trade with these countries accounts for the largest share of China exports. China also has multilateral trade agreements through the World Trade Organization. Again, this agreement enhances the china’s economic growth. It becomes easy to export and import goods and services.
Foreign investments
China is actively investing in other countries both developed and developing. Of significant interest is the investment in the US and some African countries like Kenya. Therefore, China is expanding its economic territory using these foreign investments. This provides a large base for the China products. Foreign investment has contributed immensely to the China’s GDP. Currently, China is exploiting new possibilities for more foreign investment.
The economy of Mexico is ranked fourteenth world-wide in terms of consumer power. Therefore, it is ranked lower than China. The economy of Mexico has been growing, albeit slowly. Despite the noted economic prowess, there is a widening gap between the rich and the poor in the country. The workers in the Mexico are ranked the most hardworking in terms of the man-hour put into the jobs. Despite this observation, the net productivity with respect to an-hour remains surprisingly low.
The population of Mexico
Mexico is ranked the eleventh with respect to the population. Currently, it has an estimated 124.4 million people (Cook, S., et al., 2014, 31).
Considering its area, this translates to a population density of about 63 persons per square kilometer. Many people live in urban areas. The significance of this large population is the availability of labor for the economy. This large population makes labor readily available as well as cheap. This translates to low costs of production of goods and services from relevant industries.
The GDP
Mexico economy has a large GDP value that ranks it among the most potential economies in the world. Its GDP as at 2013 was the highest recorded. It was 1.231 trillion US dollars as a nominal and 1.845 trillion US dollars as purchasing power parity (ppp).
The Term Paper on Economies Of Different Countries
Mention latest changes in economies of different countries whose classification is on the following basis: Advanced economies: post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure. E.g. Australia, Canada, Japan, United States and Western European countries. Developing economies: low-income countries ...
It recorded a growth rate of 3.9 percent from the previous year of 2012. Sector contributions to the GDP are such that agriculture contributes approximately 3.9 percent of the GDP, while industry contributes about 32.6 percent of the total GDP. In addition, services contribute about 63.5 percent of the GDP. This clearly shows that services sector is the major contributor of the GDP. It appears that the service industry is much more advanced for it to have such a huge contribution in the GDP.
Agriculture and food production
Mexicans practice agriculture extensively. It is agriculture that forms the means of livelihood for the peasants in the rural areas (Torres, R., 2003, 550).
The government regulates the imports of foods and food products in an attempt to encourage local food production. Agricultural sector still plays an important role in the economy of Mexico. It contributes about 3.9 percent to the total GDP. Although this fraction of contribution is low, it is important to note that agriculture sector still offers employment to many Mexicans. Corn is the major crop cultivated in Mexico. In terms of its production, Mexico is ranked as the fourth largest producer in the world economy. Other farm produce that contribute immensely to the economy are potatoes and sugarcane. For instance, sugarcane farming has stabilized the sugar industry in Mexico. Exporting the farm products earns the economy foreign exchange which is essential for the growth of economy.
Energy and mineral sector
Mexico produces a lot of oil for internal use and for export. In terms of ranking, it is the sixth largest oil producer in the world. It produces an estimated quantity of about 3.7 million barrels per day. This translates to about 590,000 cubic meters per day. This is a large production that generates a lot of revenue for the government. Presently, oil exports forms a very small percentage of the total exports from Mexico. It only accounts for about 7.3 percent of the exports. This shows that the industry does not significantly contribute to the GDP.
Industry sector
Industry sector in Mexico is very huge. In fact, it is the biggest contributor in the export earnings. It is estimated that it contributes to almost 90 percent of export earnings. The major industries in Mexico are automobile industry, the aircraft industry, textile industry and food and beverages industry. In addition, there is oil refining industry, construction industry, mining industry and tourism industry. All these industries contribute immensely to the total GDP in the economy of Mexico. The estimated growth rate in the industrial sector is about 3.6 percent. Industrial sector has provided employment to very many people. Approximately 24 percent of the workforce is in the industrial sector. Moreover, industrial sector contributes approximately 25.7 percent of the total GDP in the country. This is a significant contribution to the economy. Electronics account for about 30 percent of all the exports.
Tertiary sector
The tertiary sector is involved with the provision of services in the market. This sector is very strong in Mexico. It is the biggest contributor of the nation’s GDP. It contributes approximately 70.5 percent of the total GDP in the economy of Mexico. In addition, up to 58 percent of the workforce is employed in this sector. This is a huge contribution to the economy. It assists in the reduction of the levels of unemployment and poverty. The sector includes services such as transportation, commerce and warehousing. Other services offered are entertainment, restaurant and hotels, health, education, banking services and telecommunication services. In addition, there is public administration and defense service.
Tourism
Tourism is among the most important industries in Mexico that is contributing immensely to the country’s GDP. It is the fourth largest source of foreign exchange in the economy of the country. Mexico attracts very many tourists because of its many tourism sites. In addition, tourism industry also employs many people in the country. In short, the industry contributes greatly in the economy of Mexico.
Foreign trade
Mexico has bilateral trading agreements with many countries. Some of the countries that Mexico has trading partners with regard to bilateral agreements are Costa Rica, Bolivia, Nicaragua, Chile, European Union, Israel, Uruguay, Japan and many others. These countries boost the economy of Mexico because they are the major destinations for the exports from Mexico.
Conclusion
China’s economy is more advanced. It has a big potential of becoming a developed nation in the future. This is true judging by the advancements that are already in place. If these observations are anything to go by, BRIC countries stand a higher ground to become the next economic hubs in the world. China’s GDP growth rate is very encouraging. The only problem that may face China and affect its economy adversely is the one child policy. The danger of this policy is potential reduction in the labor in the future. It is postulated that by 2030, the China’s population will be decreasing. Mexico also stands higher changes of economic growth in the future. Just like in China, the GDP growth rate in Mexico is very encouraging. This is suggestive of the fact that MINT countries are also advancing forward economically. Judging by the potentials of these two nations, their economic prowess is bound for the upward trend. Unlike in China, population is not a big problem in Mexico. There is a steady population rise in the country. Both countries are putting in place strategic measures of widening their free trade agreements boundaries to include many more countries. They are also striving hard to do investment in the foreign countries. By doing so, they are making big strides towards more economic growth.
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