{"id":190485,"date":"2022-06-14T20:55:42","date_gmt":"2022-06-14T15:25:42","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=190485"},"modified":"2022-06-18T18:57:21","modified_gmt":"2022-06-18T13:27:21","slug":"the-influenza-pandemic-and-nations-within-a-nation","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-influenza-pandemic-and-nations-within-a-nation\/","title":{"rendered":"The influenza pandemic and \u2018nations within a nation"},"content":{"rendered":"\n

Context:<\/strong>\u00a0Whenever there is an increased demand for life-saving\u00a0products such as vaccines, the issue of inequity in access to such medicines arises.<\/p>\n

What are the factors that that drive production of life-saving products in a country?<\/strong><\/p>\n

Product demand is central to the development of capabilities and the resources of firms.<\/p>\n

In developed countries, the high-fixed-cost research and development activities, required to produce life-saving medicines, are incentivised. Demand in these countries is the main factor<\/strong>\u00a0behind this incentivisation.<\/p>\n

Whereas, in developing economies, demand for prophylactic products are low due to the\u00a0lower disposable income.<\/p>\n

Therefore, greater demand for prophylactic products<\/strong>\u00a0in developed economies relative to developing economies enable MNEs to bloom in developed economies. Thus, provide them a solid ground to become dominant incumbents in prophylactic product markets in developing economies too.<\/p>\n

Prophylactic products<\/strong>\u00a0are the products for which consumer pays now for some uncertain benefits in future. For example; a vaccine for some disease before outbreak of pandemic.<\/p>\n

How does the pandemic impact the balance of global medicine market?<\/strong><\/p>\n

Sudden pandemic outbreak means a sudden increase in global demand for life-saving medicines. In this case, the firm will always select the most profitable regions within a country or most profitable countries all over the world.<\/p>\n

In this case, large foreign multinationals (MNEs) face opportunity costs in serving the underdeveloped regions.<\/p>\n

A research paper published in Management Science, describe, how MNEs and domestic firms respond in the different local markets to a global demand shock, during\u00a0the 2009-10 H1N1 influenza pandemic in India. Following are findings:<\/p>\n

First,<\/strong>\u00a0the market share of MNEs fell much more in regions low in per capita public health expenditures and a lack of political alignment between federal-regional governments.<\/p>\n

Second, <\/strong>unlike domestic firms, foreign firms did not enter the influenza vaccine market or expand in underdeveloped regions.<\/p>\n

Third,<\/strong>\u00a0direct costs and opportunity costs are two defining features that can lead to inequity across regions within a nation.<\/p>\n

Significance of findings<\/strong><\/p>\n

The findings enable identifying what type of regions within a nation may require additional policy support to attract different kinds of firms to deliver life-saving products.<\/p>\n

It also provides an insight to the transnational organisations (e.g., the World Health Organization, the Gates Foundation, GAVI).\u00a0These organisations use the country\u2019s per capita income as the cut-off line to determine a country\u2019s eligibility to receive vaccine donations. However, they should also find out the most prone regions within a country. It is also possible that a country ineligible for vaccine donation may have a region which is lacking infrastructure and is poor. This type of regions must be identified and served.<\/p>\n

Source:<\/strong>\u00a0This post is created based on the article \u201cThe influenza pandemic and \u2018nations within a nation\u201d published in The Hindu on 14th<\/sup>\u00a0June 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"

Context:\u00a0Whenever there is an increased demand for life-saving\u00a0products such as vaccines, the issue of inequity in access to such medicines arises. What are the factors that that drive production of life-saving products in a country? Product demand is central to the development of capabilities and the resources of firms. In developed countries, the high-fixed-cost research… Continue reading The influenza pandemic and \u2018nations within a nation<\/span><\/a><\/p>\n","protected":false},"author":10309,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10498],"class_list":["post-190485","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704709981},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/190485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10309"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=190485"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/190485\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=190485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=190485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=190485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}