Synopsis: Over the past 15 years, pharmaceutical exports from India have explode

Question

Synopsis: Over the past 15 years, pharmaceutical exports from India have exploded, going from just $1 billion in 2000 to almost $14 billion in 2012. Much of this growth can be attributed to the decision by many Western firms to outsource their manufacturing to the country, as well as India’s signed agreement to comply with WTO rules on intellectual property rights. India, with its relatively low-cost labor, large pool of English-speaking scientists and workers, and knowledge of U.S. and European drug regulations, is an attractive manufacturing location for Western firms. Answer the following questions:

1: How might (a) U.S. pharmaceutical companies and (b) U.S. consumers benefit from the rise of the Indian pharmaceutical industry?

3: Do the benefits from trade with the Indian pharmaceutical sector outweigh the losses?

4: What international trade theory (or theories) best explains the rise of India as a major exporter of pharmaceuticals? Note: Your work should follow proper APA formatting including 12pt Times New Roman font, 1" margins all around, double-spaced, indented responses, title page, in-text citations, and reference page.

Explanation / Answer

Answer 1:

a) U.S. pharmaceutical companies benefit from the rise of the Indian pharmaceutical industry as below:

·        Low cost man power: These helps the US pharmaceutical companies to get the low cost man power, so that they can reduce the cost of man power and increases the profit for the companies.

·        Competent man power: These helps the US pharmaceutical companies to get the competent man power, which helps them in easy and effective executing and management of functional tasks. These help them to manage the work in low work force and reduce the man power expense and increase profit.

·        Improves efficiency & effectiveness: The low cost and competent man powers helps to improve the efficiency and effectiveness in the organization. Thus the US pharmaceutical companies get better efficiency and effectiveness in their organization.

·        Easy in availability of resources: These companies were struggling in getting right quality of resources for support of the organization. Thus India environment helped them in getting the right quality of resources specially human resources and natural resources needed for the company.

·        Alternate Manufacturing Locations: Indian environment provided the alternate option to these companies for execution and management of the operations.

(b) U.S. consumers benefit from the rise of the Indian pharmaceutical industry: Following are the key benefits for US consumers due to rise of Indian pharma industries are as below

·        Low cost medicines: The Indian pharma industry helps to provide the medicines at low cost to the consumers, as the cost of manufacturing is low in India. Thus the US consumers help to save their money in their medicine consumption.

·        Large variety of medicines: The India companies provided large number of medicine varieties as they can produce high variety of medicines for the US requirements.

·        Quick Availability of Medicines: The Indian companies help the US consumers in easy availability of medicines. Thus this helps their struggle in getting the medicines.

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