Question

In: Operations Management

Didi is based in China and looking to expand to Brazil; China and Brazil are BRICS...

Didi is based in China and looking to expand to Brazil; China and Brazil are BRICS nations. Why is this significant?

Solutions

Expert Solution

China and Brazil are BRICS nation.Let us briefly understand about BRICS.

BRICS is aaociation of five national economies of Brazil,Russia,India,Chaina and South Africa..The BRICS Forum, is an independent international organisation encouraging commercial, political and cultural cooperation between the BRICS nations,BRICS members are known for their significant influence on the regional affairs.

Headquater of BRICS is in Shanghai,China.The purpose of formation of this organization was firstly development of member nations secondly financial assistance thirdly free trade barrier fourthy infrastructure development.The common thing with all the nations are they are big market size accounting for over 40% of the world population,

Since both China and Brazil are BRICS nation the trade becomes easier,or one can say the trade barriers are less.Close trade inegration makes the export or services hassel free.Since cross border trade restrictions are less amon the BRICS nation it would be easy for China to expand it's business in Brazil and cater to it's large population.Entering the Brazilian market is much easier for CHina than any other non BRICS nation as complecagtions and formalities to enter other nation is much more.


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