ABSTRACT
This chapter examines some characteristics of the key economies of Brazil, Russia, India and China collectively known as the BRICs. It discusses the importance of China in the world economy and helps readers to understand some of the areas of concern in emerging markets and what the newsworthy topics for each of the BRICs are. Political risk is often greater in emerging markets than in mature developed markets, although this is country and region specific. Emerging market currencies can be very volatile on the foreign exchanges. There have been dramatic revaluations of currencies such as the Indian rupee and Argentine peso. Transport and water supplies were severely disrupted. Electricity shortages are also a feature of many low income and emerging market economies in sub-Saharan Africa. Whilst there is undoubtedly enormous growth potential in emerging markets, there are a number of uncertainties and that is something financial markets tend to dislike.
