The benefits of starting a greenfield investment for pharmaceutical Essay

The benefits of starting a greenfield investment for pharmaceutical packaging firms undertaking foreign direct investments - Essay Example and the market, which was worth $ 219.9 billion in 2012 is forecast to reach $ 374.8 billion by 2018, indicating a compounded annual growth rate of 9.1 percent (Freedonia 32-303; Markets And Markets 21-78; TLL Media) Local pharmaceutical manufacturers supply 50 percent of the requirement, and imports meet the other demand. The per capita expenditure on drugs is 130 Euros, in comparison of 300 Euros for western European regions Segmentation is also seen in the types of containers such as vials, ampoules, inhalers, powders, tubes, special closers and dispensers, caps, tamper proof caps, etc., and in the packaging process, types of drugs packed, and other factors. Pharmaceutical firms give importance to the quality and integrity of the packaging firm, dispensing errors and dosing, and the industry is very price sensitive. Hence, the packaging firms need to control cost, and maintain very strict control over the dosing and dispensing in each pack. The PESTLE analysis is used to analyse the external environmental forces that impact an industry. The forces analysed are political, economic, social, technology, legal, and environmental (Williamson, et al, 3-4). In this section, the PESTLE analysis is applied for the pharmaceutical packaging industry in Serbia. Since the past five years, Serbia has received more than $ 16 billion FDI. Various taxes such as Salary tax at 12%; corporate income tax rate at 10%, Property tax 0.4%, VAT 18% is the lowest in the region. Many foreign firms such as Fiat, US Steel, Lafarge, Coca Cola, Microsoft, Siemens, Nestle, and others have set up manufacturing plants and FDI inflows in 2013 stood at $ 3.01 billion. About 97 percent of western investors look at Serbia as the favoured destination for FDI. People are well educated, with a large number of schools and colleges offering high quality education. The brain drain, when thousands of talented Serbian graduates migrated to other European countries has reduced This section provides a

Higher cigarette taxes make smokers happier Essay

Higher cigarette taxes make smokers happier - Essay Example Each year in the United States, more than 400,000 smokers die of smoking-related illnesses. Smoking kills more people than AIDS, car accidents, alcohol, homicides, illegal drugs, suicides, and fires combined! Diseases associated with smoking include heart disease, lung cancer, chronic bronchitis, and emphysema. Smokeless tobacco is linked to oral cancers and can cause tooth abrasion, gum recession, and leukoplakia.Yet, despite these frightening and startling revelations, people still persists and the few that quit are replaced in many folds by new entrants. This inevitably leads to the question of what could be done to control cigarette consumption by Government in view of the challenges it poses to public health and the Nation manpower development. Government all over the world has toiled with the idea of levying high tax on tobacco products like cigarette in a bid to discourage its consumption.However, whether this has been achieved or not is evidenced in the increase turnover of Tobacco companies. Consider the scenarios below which tend to provide more insight into the effect of higher taxes on the average smoker. Adeolu is 47 years old. He has been smoking cigarette for the past 30 years.