Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

The benefits of starting a greenfield investment for pharmaceutical packaging firms undertaking foreign direct investments - Essay Example

Comments (0) Cite this document
Any firm that takes up contract packaging and manufacture must comply with several local and international safety, health, and hygiene regulations. This chapter…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
The benefits of starting a greenfield investment for pharmaceutical packaging firms undertaking foreign direct investments
Read TextPreview

Extract of sample "The benefits of starting a greenfield investment for pharmaceutical packaging firms undertaking foreign direct investments"

Download file to see previous pages and the market, which was worth $ 219.9 billion in 2012 is forecast to reach $ 374.8 billion by 2018, indicating a compounded annual growth rate of 9.1 percent (Freedonia 32-303; Markets And Markets 21-78; TLL Media)
Local pharmaceutical manufacturers supply 50 percent of the requirement, and imports meet the other demand. The per capita expenditure on drugs is 130 Euros, in comparison of 300 Euros for western European regions
Segmentation is also seen in the types of containers such as vials, ampoules, inhalers, powders, tubes, special closers and dispensers, caps, tamper proof caps, etc., and in the packaging process, types of drugs packed, and other factors.
Pharmaceutical firms give importance to the quality and integrity of the packaging firm, dispensing errors and dosing, and the industry is very price sensitive. Hence, the packaging firms need to control cost, and maintain very strict control over the dosing and dispensing in each pack.
The PESTLE analysis is used to analyse the external environmental forces that impact an industry. The forces analysed are political, economic, social, technology, legal, and environmental (Williamson, et al, 3-4). In this section, the PESTLE analysis is applied for the pharmaceutical packaging industry in Serbia.
Since the past five years, Serbia has received more than $ 16 billion FDI. Various taxes such as Salary tax at 12%; corporate income tax rate at 10%, Property tax 0.4%, VAT 18% is the lowest in the region.
Many foreign firms such as Fiat, US Steel, Lafarge, Coca Cola, Microsoft, Siemens, Nestle, and others have set up manufacturing plants and FDI inflows in 2013 stood at $ 3.01 billion. About 97 percent of western investors look at Serbia as the favoured destination for FDI.
People are well educated, with a large number of schools and colleges offering high quality education. The brain drain, when thousands of talented Serbian graduates migrated to other European countries has reduced
This section provides a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The benefits of starting a greenfield investment for pharmaceutical Essay”, n.d.)
Retrieved from
(The Benefits of Starting a Greenfield Investment for Pharmaceutical Essay)
“The Benefits of Starting a Greenfield Investment for Pharmaceutical Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The benefits of starting a greenfield investment for pharmaceutical packaging firms undertaking foreign direct investments

Motivation of firms for foreign direct investments - a critical review

...polluting purpose, such as commercial office space or a residential area” (Investments and Income, “Brownfield Investments”). Mergers and Acquisitions Mergers and acquisitions can be assumed to be the primary kind of foreign direct investments. Mergers and acquisitions enable transfer of existing assets from the local firms to the foreign firms. Cross border mergers occur as the control of assets and operational control would be transferred from a local organisation to a foreign firm. In this process, the local firm become affiliate of the...
12 Pages(3000 words)Dissertation

Foreign Direct Investment (FDI)

...they provide economic benefits to the host country. Lowe (2006, p. 34) explains that acquisitions as a form of foreign direct investment includes a company acquiring the assets of another company within the foreign country. The acquisition of a foreign company makes the investing company the owner of the assets of the company within the host country. Foreign direct investment may also take the form of mergers or strategic alliances. This is a business scenario in which the investing companies collaborate with companies in the host country with an aim of...
10 Pages(2500 words)Essay

Foreign Direct Investment

... aspect of IFIs in the past decades was the growth of globalization and the increasingly integrated role of the capital markets. In the early 1980s, a bulge in the level of capital flows in the direction of emergent markets became more prominent, on the basis of managing the oil revenues. Yet this degenerated into the 1982 economic meltdown due to accumulated debts. After a lull of economic crisis and the development of stronger macroeconomic policies which yielded stability, the world economy registered a sharp rise in the capital flows in the early 1990s. This came at a time when many countries that sought to rely upon direct foreign investments and credit services from non-banking organizations, accounted for the primary source... in the...
17 Pages(4250 words)Essay

Benefits of Foreign Direct Investment

...Benefits of Foreign Direct Investment Introduction Foreign Direct Investment or FDI has rapidly increased during the last few decades as the overall network of countries and institutions favoring the FDI have expanded at great pace. (Mody & Ashoka, 2007). Foreign Direct Investment plays a critical role in the development of any country because of its potential impact on economic growth. The growth experienced by many countries in Asia Pacific region provide an ample empirical evidence as to the effectiveness and impact of foreign direct...
6 Pages(1500 words)Research Proposal

Foreign Direct Investments in Bulgaria

.... This paper looks at these problems using a strategic analysis framework and proposes a few key solutions that will help the country find clear answers. Analysis of Foreign Direct Investments (FDI) in Bulgaria This paper looks at the investment climate in Bulgaria using the strategic analysis approach used by firms and countries in management decision-making. The investment climate is a country's ability to attract or encourage foreign individuals or corporations to invest or bring in funds that will start or develop an ongoing business (Kotler et al., 1997, p. 189). Foreign investors pay attention to at least four attributes of a country's investment climate: its comparative and competitive advantages, its domestic economic... ...
21 Pages(5250 words)Assignment

What is Foreign Direct Investment

...Topic:' What is Foreign Direct Investment (FDI)' Introduction For a start up or a small company, the local market is enough to sustain its growth appetite during the initial growth. A startup has inherent strengths like better understanding of the local market and consumer requirements that help it get stabilized and grow rapidly in the local market. After the initial years the home country and the local market cannot sustain growth of a company and the company must look to expand its business beyond national geographies. Expanding to other markets is no more an optional strategy for a firm- it is more of a necessity. However, this expansion should be a...
9 Pages(2250 words)Term Paper

Foreign Direct Investment demonstrated by the fact that about 90% of all exports from and imports into the U.S. flow through a U.S. MNC while roughly 50% of the trade flows in fact occur between subsidiaries or affiliates of the same MNCs.[2]. Foreign Direct Investment in another country could take place through the financing of new investments within the target country or even through mergers and acquisitions of local firms and production facilities, etc by a multinational entity, with the value of mergers increasing from 52% of the FDI in 1987 to 83% in 1999, as per UNCTAD [13]. 1.2: Benefits of Foreign Direct...
9 Pages(2250 words)Essay

Foreign direct investment

...The impact of foreign direct investment on economic growth of less developed countries By Ezekiel Eyamekuare Outline: Introduction: Aims and objectives: Motivation: Development Economics and its usefulness in this study: A Brief Review of Literature: Methodology: Discussion: An outline of the chapters to be included in this project: Reference: Introduction: Foreign direct investment (FDI) has been one of the important characteristics of the global economy for the past twenty years. It has developed at an unparalleled pace for over a decade. Liberalization of overseas investment regime is an essential part of...
24 Pages(6000 words)Research Paper

Foreign direct investment

...competitiveness by aiding the host country to enhance its export performance (Moran 38). Furthermore, FDI is beneficial to consumers as consumers within developing countries stand to benefit via new products, and enhanced quality of goods at competitive prices. Foreign direct investment is viewed a means to stimulate economic growth within a majority of world’s poorest countries. Foreign direct investment is a critical source of capital, new technology, marketing networks, and organizational and managerial skills. Foreign direct investment avail a stimulus to economic...
2 Pages(500 words)Essay

Foreign Direct Investment

...Foreign Direct Investment al Affiliation) Table of Contents Table of Contents 2 Definition of Foreign Direct Investment 3 Why do countries seek FDI? 3 Advantages of FDI 4 Disadvantages of FDI 4 2. Theoretical Background 5 3. Types of FDI  6 By motive  6 By Target 7 By Direction:  8 By Entry Mode 8 4. Methods of FDI 9 5. Factors affecting investment decisions 10 6. Cost and Benefits of FDI 11 Benefits to the Host Country 11 Benefits to the Home Country 12 Cost to the Host Country 12 Cost to the Home Country  12 Bibliography 13 1....
9 Pages(2250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The benefits of starting a greenfield investment for pharmaceutical packaging firms undertaking foreign direct investments for FREE!

Contact Us