Price Regulation and Relative Delays †Free Samples to Students

Question: Discuss about the Price Regulation and Relative Delays. Answer: Introduction: The main issue here is that that USA invents different types of medicines, which are very fruitful for the survival of human kind. So, in order to create effective medicines a good research infrastructure like a proper research laboratory with proper equipments is needed for it. The most crucial thing is recruiting scientists for this purpose. Research Scientists plays a crucial role in this aspect. Research scientists also need a good amount of sponsorship for this reason. A huge amount of money is required for all these reasons. Canada borrows the research ideas from USA and manufactures medicines by applying the research ideas. There are not so much costs in manufacturing medicines and another important factor is the price control of Canada helps it to provide medicines to the customer at a much lower rate. The Canadian law sanctions a review board whenever the cost of the medicine crosses its limit than the average cost of six countries of Europe. Thus, for this reason Drug Compa ny of other companies sells medicines at a lower cost to Canada whereas in the United States they sell at a higher cost because USA do not object to provide more money . Moreover, Canada follows the policy of price discrimination. It means that they sell medicines to people of different background at a variegated rate (Costa-Font, McGuire Varol, 2014). After recovering the expense of research and development companies by imposing high costs in the United States, the companies try to generate revenue in Canada and other countries like Germany by investing a very little amount of money for manufacturing the medicine, pills, syrups, ointments. The members of Congress in the Senate from the both the parties has initiated bills to stop this Price Discrimination either by accessing the re-importation of drugs from Canada or by entailing U.S. drug corporations to recommend to offer medicines at a uniform rate for all of North America (Conti, Padula, Larson, 2016). The controversy and co mpetition regarding the price control of medicines now between USA and Canada starts here. On the other hand USA have to envelop the research and development expenditure, so consequently the price of the pills would be much more than the the Canada medicines. However, USA will manufacture more pills than Canada, which will help it to sell the medicines at lower cost but at a similar rate to all over the country (Lopert Gleeson, 2013). So, it can be said that the common people victim in the midst of the companies and the government which is very common in political matters. Give two suitable arguments in support of your position Ans. I think that the competition between different countries regarding price regulation matter is very critical and delicate. At one point of time, we can observe the cost of medicine is higher in USA whereas after some time the expenditure becomes highest in Canada (Lorenzoni, Belloni Sassi, 2014). We cannot become stagnant in one viewpoint. The people who are associated in politics and in medicine companies manipulate the whole thing. It is true that Price Discrimination policies is not applicable and or correct everywhere. Nevertheless, in countries like Mexico where most of the people come from very poor background, most of the people have to fight for very trivial things. Therefore, it is evitable that most of them cannot pay money if the prices of the medicine become high. Medicine is a very essential necessity that is required in everyday life; people do not have the option but to buy medicines. Therefore, in this context price discrimination policy is very much required. Wh en there is sale of medicines, price discrimination policy in which in most cases the medicine is sold at a very low rate the companies generates much profit and the people also gets much benefit due to this. Canada is at far better position in economic terms than Mexico and Latin America countries and African countries. Nevertheless, the financial status of Canada is not similar to USA. Moreover, Canada does not have authority like USA to regulate the prices of the medicine. In fact, the most important thing is that the present cost of the medicines is not much lower than the USA. Canada is perhaps the second highest country in context to the costs of the medicine pills and ointments and people belonging to the higher economy background do not have any problem in investing a huge amount of money (Marchildon, 2013). Nevertheless, the problem always lies with the middle class people. Finally, it can be said that the politicians and other drug companies should look after the problem o f the common people in terms of medicines and other essential things (Price Underhill, 2013). Reference Conti, R. M., Padula, W. V., Larson, R. A. (2016). Changing the cost of care for chronic myeloid leukemia: the availability of generic imatinib in the USA and the EU. InChronic Myeloid Leukemia(pp. 231-255). Springer International Publishing. Costa-Font, J., McGuire, A., Varol, N. (2014). Price regulation and relative delays in generic drug adoption.Journal of health economics,38, 1-9. Lopert, R., Gleeson, D. (2013). The high price of free trade: US trade agreements and access to medicines.The Journal of Law, Medicine Ethics,41(1), 199-223. Lorenzoni, L., Belloni, A., Sassi, F. (2014). Health-care expenditure and health policy in the USA versus other high-spending OECD countries.The Lancet,384(9937), 83-92. Marchildon, G. P. (2013).Health systems in transition: Canada(Vol. 7, No. 3). University of Toronto Press. Price, W. D., Underhill, L. (2013). Application of laws, policies, and guidance from the United States and Canada to the regulation of food and feed derived from genetically modified crops: interpretation of composition data.Journal of agricultural and food chemistry,61(35), 8349-8355.