BUS 301 MIDTERM SCRIPT

Name: Kazi Junaed

Section: 01

ID: 20304004
Answer the following questions 01:

Bangladesh has a lot of growing population and with that it has a growing number of industries.
And with each new industry we are being introduced to different and new types of ethical issues
that affect this country.

So for this question I am considering pharmaceutical industry in Bangladesh and the 5 ethical
issues that can be assessed:

1. Counterfeit Medicines: Bangladesh has faced issues with counterfeit medicines, this has
led to health risks for consumers. This is prominent in the less developed area where
people are not aware of the products/medicines that they are buying.

2. Price Gouging: Some pharmaceutical companies may engage in price gouging, making
essential medications unaffordable for the general population. This is their way to make
more money and essentially gatekeeping certain medicines to the people who may need it
but can not afford to buy those medicines.

3. Lack of Quality Control: Pharmaceutical companies do not maintain essential quality

control standards, potentially leading to unsafe or dull drugs. Sometimes they don't even
pass the regulations and still release their products to the market. And people get affected
by those unknown and untested medicines which can potentially kill them.

4. Bribery and Corruption: This industry is not immune to bribery and corruption,
particularly in obtaining licenses, permits, and regulatory approvals. This corruption also
extends to the doctors, where pharmaceutical company reps bribe the doctors and
incentives them to prescribe their medicine to the public.

5. Lack of Access to Essential Medications: In some cases, limited access to essential

medications can also be an ethical concern, preventing some of the populations from
receiving necessary treatment.

And the managers role in this situation is:

1. Counterfeit Medicines: Unethical managers turn their head in other directions in these
situations, allowing people to get hurt and potentially die due to the medicines not being
genuine. And making profit over people’s corpses.
2. Price Gouging: The pharmaceutical managers intentionally set high prices for essential
medications, prioritizing profits over the well-being of patients. This makes less fortunate
people miss out on their essential medications.

3. Lack of Quality Control: Managers have big responsibilities with quality control, and
without proper oversight this can become detrimental to the people and patients. And this
role is arguably most important.

4. Bribery and Corruptions: Often managers without ethics engage in these types of issues
where they take/provide bribery, in exchange of getting their way with the regulations. Or
in some other ways to corrupt the whole system.

5. Lack of Access to Essential Medication: Managers can fall short or out right make no
effort to make their medications more accessible to the general public.
Answer to the Question no. 02

Bangladesh can gain a national competitive advantage in the pharmaceutical industry by

implementing a smart mix of government policies based on the New Trade Theory and Porter's
Theory of National Competitive Advantage. The relevance of economies of scale, which are
frequently present in pharmaceutical manufacture, is highlighted by New Trade Theory. To
capitalize on this, the government should invest in R&D to encourage innovation.

To establish a highly qualified pharmaceutical workforce, it is also critical to invest in education

and skill development. Furthermore, developing infrastructure, adopting a fair regulatory
framework, and increasing intellectual property protection can all help to boost competitiveness.

The importance of factor conditions, demand conditions, linked and supporting industries, and
firm strategy, structure, and rivalry is emphasized by Porter's Theory. The government should
create a favorable climate for pharmaceutical companies by boosting market access, assisting
with export promotion, and fostering cluster development. This comprehensive approach has the
potential to establish Bangladesh as a competitive player in the global pharmaceutical market,
meeting rising demand for high-quality pharmaceuticals and healthcare solutions.

The government needs to emphasize essential measures in order to develop a national

competitive edge in Bangladesh's pharmaceutical sector. These include significant investments in
research and development (R&D) to encourage innovation, leading to the development of new
drugs and technology.

Education and skill development initiatives should be promoted together in order to produce a
highly skilled pharmaceutical workforce. Infrastructure improvements, particularly in energy,
and communication, have the potential to cut production and distribution costs. To assure
product quality and safety complies with international standards, stringent regulatory procedures
are required. Improving intellectual property protection will encourage innovation while also
protecting against counterfeiting.

Furthermore, the government should work actively to facilitate market access, encourage export
activities, and promote relationships with major pharmaceutical corporations, establishing
Bangladesh as a competitive player in the global pharmaceutical market.
Answer to the Question no. 03

The ethical defensibility of outsourcing production to the developing world, involving layoffs in
the firm's home country, depends on several conditions and considerations:

1. Transparency and Fairness: It is ethically acceptable for businesses to be upfront about

their reasons for outsourcing and to manage layoffs properly. Clear communication with
affected employees, as well as acceptable severance benefits, can help to alleviate ethical
concerns.

2. Economic viability: Outsourcing might be considered ethically justified if it is required

for the company's financial stability and long-term viability. This is especially important
if the company's survival is on stake.

3. Displaced Employee Support: Ethical outsourcing should include displays to assist

displaced employees in their job search, retraining, or skill development. The company
should be responsible for assisting people in shifting to new potentials.

4. Respect for Labor Rights: Outsourcing to developing countries must be tied to a

dedication to labor rights and fair working conditions in the host country. It is critical to
ensure that workers are not exploited and have access to basic labor rights.

5. Comparative Advantage: Outsourcing may be ethically defensible if it improves a

company's overall competitiveness and provides value for a broader group of
stakeholders, such as shareholders, consumers, and the remaining staff.

To cut expenses, IBM outsourced its call center operations to India in the early 2000s. While this
resulted in layoffs in the US, IBM gave significant training and job placement assistance to those
affected, indicating an ethical approach to outsourcing.
Answer to the Question no. 04

The argument that the world's poorest countries are at a competitive disadvantage in all sectors
of their economies, making free trade harmful to their interests, is complex. While these
countries confront severe obstacles such as a lack of money, poor-quality land, overpopulation,
and low education levels, the impact of free trade is more subtle.

When handled appropriately, free trade can provide possibilities for these countries. It enables
them to find industries in which they have a competitive advantage, even in the absence of
substantial cash or advanced resources. Agriculture, handicrafts, and labor-intensive industry can
all serve as launching pads for export-led growth.

Furthermore, free trade can help to diversify the economy. Access to global markets encourages
countries to explore other businesses, minimizing reliance on a single industry and increasing
resilience to economic shocks.

Foreign direct investment (FDI) can be quite beneficial. Foreign cash and skills are frequently
attracted by free trade, supporting infrastructural development and technological innovation.
This, in turn, has the potential to support local industry and create job opportunities.

While schooling may be difficult, free trade can encourage governments to engage in human
capital development in order to meet market needs and increase workforce capabilities.

However, free trade must be complemented with specific policies and international backing. Aid
and development assistance can be provided by developed countries to assist the poorest nations
in overcoming structural barriers and investing in vital areas such as education, healthcare, and
infrastructure.