CEOs: Cost-Cutting Not Prime Reason For BRIC Business

Access to new customers and a means to serve existing customers, not cost cutting, are the primary reasons CEOs want to do business in the so-called BRIC countries -- Brazil, Russia, India and China, says a PricewaterhouseCoopers (PwC) survey being released as the World Economic Forum gets underway in Davos, Switzerland. Seventy-one percent of the CEOs say their companies plan to do business in at least one of the four BRIC nations during the next three years. Not surprisingly, China is the most likely business destination, with 55% of the CEOs citing it.

More generally, CEOs believe that globalization will bring positive results to their companies. Fifty-eight percent say there'll be some positive impact during the next year; 63% expect it during the next three years.

Over-regulation is the most significant barrier to globalization, the CEOs say. Terrorism and the anti-globalization movement are seen as the least problematic.

PwC surveyed 1,410 CEOs in 45 countries during the final calendar quarter of 2005.

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