The benefits of starting a greenfield investment for pharmaceutical Essay

The benefits of starting a greenfield investment for pharmaceutical incase firms undertaking foreign direct investments - Essay spokespersonand 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 regionsSegmentation 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 n eed to control cost, and maintain very strict control over the dosing and dispensing in each pack.The PESTLE analytic thinking is used to analyse the external environmental forces that impact an industry. The forces analysed ar 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 revenuees 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 reducedThis section provides a