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1. International and Bi-lateral Treaties Impacting Medeco’s Decision
There are various treaties that took place between EU and USA that will impact the Medeco's decision making. Mentioned below are key decisions that should be considered (The European Union, 2009) by Medeco before entering the European market:

(i) Information to Patients: The advertisements of Pharmaceuticals to the general public were opposed in EU's High-Level Pharmaceutical Forum.

(ii) Relative effectiveness: Any of the European Union members apply Health Technology Assessment before allowing any company to access their respective market. EUnetHTA has been established to look after the sustainable network for health technology assessment throughout Europe and focuses on the implementation of practical tools to provide relevant information member states.

(iii) Pricing and Reimbursement: European member states are pressing to push down the prices of new medicines and equipment to bring the cost incurred by customers at the affordable rates. This factor, if established, will bring more competition for Medeco in EU.

(iv) Parallel trading: This policy will drive the prices further, thus impacting the R&D of the company.

(v) Competition in the off-patent sector: As Medeco, being the company from the US, relies on intellectual property protection to secure appropriate returns that it invests in R&D. When such protections expire, generally companies expect that generic competition will stimulate price reductions. But this is not the case in EU, as the compensatory mechanisms applied by EU members masks the competition and decreases the returns to innovation, which will be problematic for Medeco in the longer run.

As per agreement between China and US are concerned, they have focused on various measures (TCC