How the BRICS countries are gaining global economic influence | The rise of the BRICS countries is changing the global economic order and even influencing the economic policies of the West.

How the BRICS countries are gaining global economic influence | The rise of the BRICS countries is changing the global economic order and even influencing the economic policies of the West.

The BRICS countries, consisting of Brazil, Russia, India, China and South Africa, are gaining more and more influence in economic policy worldwide. Although they have not formed a common free trade area and a common currency was considered unrealistic, their anti-liberal paradigm has had an impact on the economic policies of Western industrialized nations. The BRICS countries are responsible for almost a third of the protectionist trade distortions worldwide. Government subsidies for domestic suppliers and non-tariff trade barriers hinder market opening. The protectionist tendency of the BRICS countries has also affected the G7 countries, which are increasingly taking protectionist measures and turning away from free trade. This trend reflects the loss of US dominance and changes in the global order. The BRICS countries act as an alternative to the liberal market paradigm of the West and also find support in other countries in the global south. The real challenge for the G7 countries is not to leave the economic policy vacuum to the BRICS countries.

This development can have far-reaching effects on the market and the financial industry. Increased protectionism may lead to trade barriers and a reduction in international trade volumes. This, in turn, can disrupt supply chains and force companies to seek new trading partners. This could lead to fragmentation of the global trading system and impact global competition.

The BRICS countries already have a significant influence on the global economic order. They represent over 40 percent of the world's population and contribute around a quarter of global economic output. Their growing influence could lead to other countries and regions trying to adopt similar models and form new economic blocs. This could challenge the existing economic hegemony of the Western industrial nations.

It is important for companies seeking to enter or expand in the BRICS markets to adapt to the specific economic and political conditions in these countries. They must take into account the protectionist measures and trade distortions and develop alternative trade routes. Governments seeking to negotiate free trade agreements with BRICS members should also take into account the economic and political realities of these countries.

According to a report by amp2.handelsblatt.com, it is clear that the influence of the BRICS countries on the global economy is already significant and continues to spread. It is important to monitor this development and analyze its potential impact in order to prepare for possible changes in the market and the financial industry. The trend towards protectionism requires adjustments in trade policy and a forward-looking strategy to address the challenges and opportunities it presents.