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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
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Research studies indicate that there is direct relationship between FDI and financial markets. According to the research studies, structural changes in financial markets have been used in attracting FDI. The general view is that stock markets have been established with the main reason of intermediating funds towards investment projects (Hui and Margarida 210).
Undoubtedly, this has given a rise in FDI volume and was accompanied by a considerable change in its composition. It has been noticed that in the countries, particularly undertaking privatisation of various public enterprises, investments in the form of mergers and acquisitions have experienced a rapid growth than those investments in the new Greenfield investments.
Nonetheless, the MNEs need not be large firms, and neither must they be operating in the technologically intensive industries (Huang, 2003, p.73). The main conventional objective of an MNE is to maximize the wealth of the shareholders. The decisions of the MNE will be made towards the achievement of this objective (Multinational Enterprise, n.d).
FDI can also be defined as an investment of a company in a foreign country by building a factory within the host country. It is through a company’s direct investment in machinery, building and equipment in another country that foreign direct investment is made possible.
Inward FDI increased from 9.6% of GDP in 1990 to 26.7% in 2006. (Woodward, 2011). There has also been a recent flow of FDI towards developing economies and this has had a plethora of effects, both for home and host countries. (Raj and Sager, 2005). Foreign Direct Investment has over the last three decades aroused conflicting responses from the first and third world.
The closer linkage between and among global powers has precipitated more interdependence and better business opportunities among countries, but when economic crises strike more seriously than expected countries suffer economic losses, which sometimes cannot be solved by the International Financial Institutions (IFIs).
Some of these countries became full European Union (EU) members in May 2004. They also experienced a significant increase in foreign direct investment (FDI). As a consequence, the ratio of inward FDI stock to the 12 CEE countries studied here in total world inward FDI stock increased more than three-fold, from 0.81% in 1994 to 2.89% in 2004.
(Wikipedia, 2006). After the 1960's, foreign direct investments (FDI) have increased at a steady rate, with FDI stocks making up twenty percent of the world's Gross Domestic Product (GDP). Currently, China leads the world in foreign direct investments.
The author states that a multinational firm in a developed country may face higher labor costs and higher production costs when locating its subsidiaries in its own home country, while a shift overseas may involve a larger initial investment but is economically beneficial in the long run because the margin of profits are higher.
rategies that enable entities to diversify its assets and risk across diverse countries by engaging in contractual agreements with multiple potential partners. Companies may find it advantageous by producing in foreign countries compared to exporting to those countries based on
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