Question

In: Economics

Your pharmaceutical firm is seeking to open up new international markets by partnering with various local...

Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger with different market segments (hospitals, retail pharmacies, etc.) but also have substantial overlap.

In Egypt, you calculate that the annual value created by one distributor is $330 million per year, but would be $440 million if two distributors carried your product line.

Assuming a nonstrategic view of bargaining, you would expect to capturemillion of this deal. (Hint: The two distributors are independent of each other; therefore, you conduct separate negotiations with each.)

Argentina also has two distributors that add value equivalent to the value added by the two distributors in Egypt, but both are run by the government.

Assuming a nonstrategic view of bargaining, you would expect to capturemillion of this deal.

In Argentina, if you do not reach an agreement with the government distributors, you can set up a less efficient Internet-based distribution system that would generate $110 million in value to you.

Assuming a nonstrategic view of bargaining, you would expect to capturemillion of this deal.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Your pharmaceutical firm is seeking to open up new international markets by partnering with various local...
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger with different market segments (hospitals, retail pharmacies, etc.) but also have substantial overlap. In Egypt, you calculate that the annual value created by one distributor is $240 million per year, but would be $320 million if two distributors carried your product line. Assuming a nonstrategic view of bargaining, you would expect to capture $______ million...
5. Individual Problems 16-5 Your pharmaceutical firm is seeking to open up new international markets by...
5. Individual Problems 16-5 Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger with different market segments (hospitals, retail pharmacies, etc.) but also have substantial overlap. In Egypt, you calculate that the annual value created by one distributor is $90 million per year, but would be $120 million if two distributors carried your product line. Assuming a nonstrategic view of bargaining, you would expect...
MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two...
MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $400,000 but yields a 15 percent savings over the current machine used. Machine 2 costs $850,000 but yields a 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost information for the current machine is also provided. Year Projected Cost 1 950,000 2 1,350,000 3 1,400,000 4 1,550,000 5...
You are the international manager of a Canadian pharmaceutical company that has just developed a new...
You are the international manager of a Canadian pharmaceutical company that has just developed a new drug that can perform the same functions as the competition’s but costs only half as much to manufacture. Your CEO has asked you to formulate a recommendation for how to expand into Western Europe. You can choose to 1. Export from Canada; 2.License a European firm to manufacture and market the new drug in Europe; or 3.Set up a wholly owned subsidiary in Europe....
You have a new start-up firm. You think that the value of your start-up is around...
You have a new start-up firm. You think that the value of your start-up is around $60 million, but you will need to do a serious NPV analysis before you know the precise value. You are planning to have a 50% debt-to-value ratio, and that you will continuously rebalance to maintain this leverage. You have information on two other companies. The names of these companies are “Comp A” and “Comp B”. Comp A has the same business risk as your...
If a country fixes its exchange rate but keeps its capital markets open to international flows,...
If a country fixes its exchange rate but keeps its capital markets open to international flows, what does it give up? Explain, and show.
WHO WILL STAFF UP THE CHINA OPERATIONS? Your international company headquartered in New Jersey is sending...
WHO WILL STAFF UP THE CHINA OPERATIONS? Your international company headquartered in New Jersey is sending an expatriate to China for a three-year assignment to staff up and run a new branch of its industrial products business. The main Chinese customers are using the products in their Middle Eastern and North African petroleum operations. You have extensive overseas experience and presently serve as VP, Human Resources. You chair the selection committee. There were 12 internal people interested in the position,...
As a new employee of a local accounting firm, your first client is Orlando University Bookstore....
As a new employee of a local accounting firm, your first client is Orlando University Bookstore. Jack Stone, the manager, would like some advice on several aspects of the bookstore’s accounting information systems. Submit a 2 page report detailing the bookstore’s need for an AIS, the benefits of the system and how this data will be used to create financial reports.
Countries often implement various trade restrictions in international markets to protect their domestic economies. Suppose a...
Countries often implement various trade restrictions in international markets to protect their domestic economies. Suppose a trading partner of the United States imposes a tariff on our goods. What would we expect to happen in the market to measures like prices, quantities of goods exchanged, exchange rates, employment and/or welfare? Can you suggest an alternative policy that might improve the foreign country’s economy without resorting to a tariff?
Open a new thread on the discussion board. Many product markets in the United States are...
Open a new thread on the discussion board. Many product markets in the United States are monopolisticaly competitive due to the use of product differentiation. What is product differentiation? How does product differentiation give a company market power especially over pricing? Give one or two examples of products that sustain higher pricing due to product differentiation. Is this justified?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT