Question

 

Analyze the pharmaceutical industry industrial organization using the Circular Flow Model?

Answer 1

The circular flow of economic activity is model showing the basic economic relationships within a market economy .It illustrates the balance between injections and leakeages in the economy .The model includes households,businesses and government.Pharmaceutical industry consists of the discovery ,development and manufacturing of drugs and medications by public and private organizations .The reasearch in the field such as chemistry and physiology .Here the circular flow model includes attaining regulatory approval from government agencies ,this will result in the continual evolution and advancement of the pharmaceutical industry and provide effective medicines to the households and help elimination of the diseases .The pharmaceutical companies organize themselves and adopt the modern technology and continuous reasearch to gain advantages over disease which are earlier considered non defeating.