Free trade and globalization has made a big impact on pharmaceutical industry in India. India used to make knockoffs drugs from the Western and Japanese pharmaceutical companies that foreign countries would not purchase. This was due to the patented products that violated the intellectual property rights. India was banned from selling fake products to developed countries. Also, foreign countries did not invest in India’s pharmaceutical business. This causes significant loss from foreign companies. However, India agreed with WTO rules on intellectual property rights, and stopped making knockoffs products. Thus, foreign companies begin to do business in India that resulted in dramatic growth in pharmaceutical field. The pharmaceutical field saw
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India agreed with WTO on intellectual property rights and stopped making copy products. This made a huge impact to India’s pharmaceutical field because foreign companies can do business in India. At the same time, local start ups invested in pharmaceutical sector to discover and produce new products. This created jobs for scientist and workers in India. Due to the high demand of workers in pharmaceutical field, there are pharmaceutical programs in universities that attract talented people. Also, India gained experience in the generic drug business, and an expertise in dealing with Western regulatory agencies. The FDA opened two offices in India to oversee manufacturing compliance and that the safeties are consistent with FDA standards. Thus, India has about 900 plants that are FDA approved which make Indian companies a potential rivals to other places like China. Furthermore, western countries outsource drug manufacturing to India because of their low cost compared to cost in developed countries. This helps increases people to go into pharmaceutical field since there is a high demand of workers is this field. This helps boost pharmaceutical sector and India’s economy since they are exporting goods to foreign …show more content…
Absolute advantage is to produce goods or services at a lower cost than competitors, using the same amount of resources. Comparative advantage is when a country specialized in producing goods or services efficiently than other goods and services. Bangladesh major good is exporting textile products. The country relied on textile products for employment, income and economic growth. These export products are low cost finished goods sold to retailers like Wal-Mart. Since Bangladesh has an advantage, they did not collapse in 2008 financial crisis. They continue to grow from $8.9 billion to $10.7 billion in export, from 2006 to 2008 respectively. Their advantage in the production of textiles allowed the country to grow in the world markets. Bangladesh has low cost products that made it easier for Wal-Mart to increase their purchased because their customers were looking for low prices during the financial crisis. Bangladesh’s textile production leads to investments by textile manufacturers. Western countries are relying on cheap foreign labor to manufacture textile products, and by making items affordable to their customers. Thus, heavy investments are in textile field due to the high demand from western
India agreed with WTO on intellectual property rights and stopped making copy products. This made a huge impact to India’s pharmaceutical field because foreign companies can do business in India. At the same time, local start ups invested in pharmaceutical sector to discover and produce new products. This created jobs for scientist and workers in India. Due to the high demand of workers in pharmaceutical field, there are pharmaceutical programs in universities that attract talented people. Also, India gained experience in the generic drug business, and an expertise in dealing with Western regulatory agencies. The FDA opened two offices in India to oversee manufacturing compliance and that the safeties are consistent with FDA standards. Thus, India has about 900 plants that are FDA approved which make Indian companies a potential rivals to other places like China. Furthermore, western countries outsource drug manufacturing to India because of their low cost compared to cost in developed countries. This helps increases people to go into pharmaceutical field since there is a high demand of workers is this field. This helps boost pharmaceutical sector and India’s economy since they are exporting goods to foreign …show more content…
Absolute advantage is to produce goods or services at a lower cost than competitors, using the same amount of resources. Comparative advantage is when a country specialized in producing goods or services efficiently than other goods and services. Bangladesh major good is exporting textile products. The country relied on textile products for employment, income and economic growth. These export products are low cost finished goods sold to retailers like Wal-Mart. Since Bangladesh has an advantage, they did not collapse in 2008 financial crisis. They continue to grow from $8.9 billion to $10.7 billion in export, from 2006 to 2008 respectively. Their advantage in the production of textiles allowed the country to grow in the world markets. Bangladesh has low cost products that made it easier for Wal-Mart to increase their purchased because their customers were looking for low prices during the financial crisis. Bangladesh’s textile production leads to investments by textile manufacturers. Western countries are relying on cheap foreign labor to manufacture textile products, and by making items affordable to their customers. Thus, heavy investments are in textile field due to the high demand from western