19.) Globalisation Flashcards
What is included in the globalisation of healthcare?
Movement of labour and consumers, international trade of pharmaceuticals, spread of disease, global drug firms
Why do people migrate for health reasons?
Consumers migrate to low GDP countries to seek lower prices. Labour migrate to high GDP countries to seek higher wages.
What is the motivation and difficulties for labour migrating?
Improved facilities and working conditions, career development, improved quality of life. Language barriers, immigration policy
What are the benefits and costs of labour migration?
Efficient use of resources, maintains downward pressure on wages
What is medical tourism?
Migrating to seek medical treatment abroad for lower prices. Efficient treatments, producers make profits, consumers get better VFM, Uncertain treatment quality, costs of complication following return to home country, problems with insurance coverage.
What is optimal pricing method for pharmaceutical firms?
They are monopolists selling worldwide, best to price discriminate, charge higher prices in markets where demand is higher and more elastic.
How do countries benefit from price discrimination?
Low priced countries buy more than required to sell back to high priced countries at a price lower than offered by the market. High priced countries still paying less, reduces profits for the firms.
What is parallel imports?
Countries import from wholesalers for cheaper than buying direct from manufacturers
What are the problems with parallel imports and when do they occur?
Increased counterfeits, problem occurs in price sensitive markets, low cost of manufacture, low drug literacy, ineffective regulation and policing.
What has helped the spread of disease?
International air travel, perfect conditions for incubation and transmission of disease.
