How much of the value can you expect to capture

Assignment Help Macroeconomics

Reference no: EM133539356

Problem

Your place of employment at a pharmaceutical firm is seeking to open new international markets by partnering with various local distributors. The various distributors within a country are stronger with different market segments (clinics, hospitals, retail pharmacies, etc.) but also have substantial overlap.

Question 1. In Germany, you calculate that the annual value created by one distributor is $60 million per year but would be $80 million if two distributors carried your product line. How much of the value can you expect to capture?

Question 2. France also has two distributors with values like those in Germany, but both are run by the government. How does this affect the amount you could capture?

Question 3. In France, if you do not reach an agreement with the government distributors, you can set up a less efficient Internet-based distribution system that would generate $20 million in value to you. How does this affect the amount you could capture?

Reference no: EM133539356

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