Question

In: Economics

how is AstraZeneca hoping to deal with the price level differences between developed and developing country...

how is AstraZeneca hoping to deal with the price level differences between developed and developing country markets?

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Expert Solution

Answer:
AstraZeneca hoping to deal with the price level differences between developed and developing country markets in following ways:

  • It is partnering with local manufacturers of the country to produce medicine locally so that transportation costs are reduced and manufacturing cost will also be less, giving margin to the company to sell drugs at lower rate in developing country.
  • At some places company has given license to manufacture drugs to different companies also keeping some percentage of profit from the sell, so that total manufacturing, marketing and delivery system should be handled by other country.
  • In developed countries as they can afford bit costly medicine at the same time other companies also sells at higher rates, so in developed countries it is selling medicines at higher rates to balance loss which it may incur for selling in developing countries.

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