CHAP 6 * Introduction

* The indian pharmaceutical companies, before 2005, were not allowed to trade with developed countries because, India did not respected drug patents.

* In 2005 India signed up a agreement that stated that India would agree with global patent rules. * This oppened a path for the rising of business opportunities. * This pharmaceutical firms produce now, low-cost generical and patented medicines that are sold worldwide, usually in partnership with western companies. * The western companies perform the R&D and marketing, and contract some indian firms to produce the medicines * This way of working togethere lowered the costs for western firms e for western consumers, at the same time it generated Jobs in índia increasing the wealth of the country, so now indians can buy more western products. * There are always winners and loosers. It can be win-win in long term as the winners will be more wealthier and spend more buying losser’s stuff * The earnings of the winners are bigger then the losses of loosers, so globally it is better to trade.

* An Overview of Trade Theory:

* Free Trade: situtation in wich the government does not influence in what consumers can buy or sell to other countries. * The Benefits of Trade:

* No one suggests that Iceland can grown its own oranges, so they can benefit of trading what they are good producers(fish) for oranges, and then have a mixed diet. * It is hard to people to understand why it is benefical to buy something for other country if your country is capable to produce. Some americans arguee that whenever possible people should buy american goods in order to help US industries and employment. * The gains arise of the fact countries can specialize in some product that can be more efficiently produced at home, while