Question

In: Economics

If you were going to open up a new US company that produces vaccines, which country...

If you were going to open up a new US company that produces vaccines, which country would you base your international headquarters in, and why? Think through logistics and geopolitical conflicts. Please write at least 250 words

Solutions

Expert Solution

We can choose India as the international headquarter.

India is the second largest highly populated contry.So the country can be regarded as a key revenue genrator for the company.Indian vaccine market is growing fastly .Its domestic market for vaccine worth $300million.Being  a highly populated developing country different Immunisatation programmes are recommended by the government.There are 6 essential vaccines that are a part of national immunisation programme.And India needs millions of vaccine doses every year for many diseases.Domestic medicine supply is very less as compared with its huge demand.

Politically there is friendly relationship between both of the governments.No political disturbances between US and India unlike China.the highly populated country.Reliable vaccine production in affordable price s,huge demand for vaccines, cheep labour availability are also attractive factors in India.Rapidly emerging diseases,and mismatch of long term supply and demand of vaccines always happens here.

The global vaccine market was estimated at around $US 32.05 billion in 2012.The market witnessed growth rate of above 8%. and is expected to reach US$84.4 billion by 2022. All these are due to the product introduction and rising usage particularly in South America, Europe India and China.The medicine market in developing countries like India is anticipated to become larger than the developed countries by 2020.Emerging market and introduction of new vaccines in developing countries are main concern of all vaccine companies. UN children's fund procured billions of doses of vaccine every year.About 75% of vaccines currently procured by UN agencies are produced by manufacturers in developing countries.  


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