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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