Trade Barriers and Public Sector Corruption by Country (440 words)

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Question

You work at a pharmaceutical company that is considering entering India, Chile, Canada, China and Turkey. Conduct the appropriate level of research in a trade barriers database to identify information on India’s current requirements (tariffs, duties, non-tariff barriers, investment-related barriers, and intellectual property rights). Also, the company is worrying about potential corruption. Using Transparency International’s Corruption Perceptions Index (CPI) that is a comparative assessment of a country’s integrity performance, find how the above countries rank. Further, identify the five countries with the lowest and the five with the highest CPI scores according to this index. Do you see any trends between CPI scores and the level of economic and social development of a country?

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Within the pharmaceutical industry the globalEDGE Trade Barrier Database lists a potential trade barrier for each of the five countries under consideration (India, Chile, China, Canada and Turkey). These are listed in Exhibit 1. We note that several potential trade barrier issues are dated. For example, both Canadian items were last checked in 2005. Three are flagged as “Key Barriers”: one in Chile, one in Turkey and one in India. A closer look at the issues listed for India is provided in Exhibit 2. Panel A of Exhibit 2 indicates that as of 2008 there were problems enforcing intellectual property rights in India. Panel B of Exhibit 2 indicates that a “Key Barrier” documented last year involves a standard that discriminates against imports by requiring all imported medical devices to have a remaining shelf life that is not less than 60% of the total shelf life....

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