The Impacts of Financial Markets of BRICS Countries on their Foreign Trade

The Impacts of Financial Markets of BRICS Countries on their Foreign Trade Order Description ABSTRACT: The purpose of this study is to analyze how much the financial markets of BRICS countries contribute to their foreign trade. In this regard, emphasis will be made on the BRICS countries owing to their active roles in the global economy and their macro size. Attempt is made to focus on an appropriate bunch of data for the research goals in the study. Analysis is conducted based on secondary data accompanied by tables in order for the main idea to be understood better. The analysis addresses the impact and role of the financial markets of these countries on foreign trade. Detailed analysis of current financial markets of BRICS countries is made and the direction of the trend for the last five years is inquired. This period covers the years 2010-2014. Understanding the trend for external trade and its relationship with financial markets by way of using other data is addressed. This study focuses on identifying on what scale the financial markets constitute a subject of foreign trade as an economic unit for the BRICS countries. In other words, it is understood that utilization of financial markets is in the status of "trade of shares and stakes" on the scale of global investor’s portfolio. In a general sense, however, it is concluded that financial markets make positive contribution to the foreign trade of BRICS countries. Moreover, this study also addresses opinions with regard to the role which both of these economic phenomena play in BRICS countries.