Role of risk and return in the pharmaceutical industry

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Discuss the role of risk and return in the pharmaceutical industry.

In the U.S. health expenditures on drugs amount to about 10% of total health expenditures. In Japan, where physicians are legally permitted to sell pharmaceuticals, national expenditures on drugs are almost double the level in the U.S. Discuss how the incentives of physicians differ in both countries. Suggest some reasons why the legal requirements might be so different.

Reference no: EM13833161

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