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The G Banking Group recently reported that it was off shoring (moving) its back-office operations from European country D to India where it already has some significant operations. Centralising most back-office operations in India is part of the Group's plan to grow its international banking business. (India is one of the fast emerging economies in the so-called BRIC group of Brazil, Russia, India and China).
According to a G Banking Group spokesperson, the move would involve cutting about 500 jobs from its operations in country D but generating a similar number of new jobs in India where it already employs 3,000 people. The spokesperson was, however, quick to add that some call centres would still remain in country D.
Describe the key factors involved in the emergence of the BRIC economies.
Growth of BRIC Economies
Currently the most important growing economies in the world are Brazil, Russia, India and China and they have come to be known as the BRIC group. The growth of each of these economies contains unique aspects of the history of each country but there are some general factors that have influenced the growth of all four. These contain the following:
General factors driving growth
Globalisation
This concept refers to the growing interdependence of countries worldwide and the freedom it gives to firms and individuals to initiate economic transactions with those in other countries. Factors that have contributed to the globalisation process contain;
What is Prime Cost? The sum of Direct Labour Cost, Direct Expenses and Direct Material Cost is Prime Cost.
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