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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (211318)	11/9/2004 10:45:47 PM
From: TimF	Read Replies (1) \| Respond to of 1571707

"If you reduce the expected return in one industry" The profits generated by price differentials between U.S. prices and world prices are not the bulk of returns. If anything it just distorts the world scale marketing and distribution. If we assume what you say is true it doesn't change the truth of the statement you replied to "In general if you reduce the expected return of investment your reduce investment. If you reduce the expected return in one industry, then eventually you will channel investment away from that industry." The only thing that might be relevant is if the price differentials between countries are low, than allowing price controlled drugs in from other countries might not have as big of effect on reducing profits or expected profits. Sometimes price controls have little effect because the market clearing price is within the limit placed by the price control. However if this is the case and drug company profits would not be greatly reduced then it would also imply that the prices paid by consumers under a regime of legal reimportation would not decline that much. You can't have massive declines in prices and small declines in profits unless you have large decrease in costs or a large increase in volume, neither of which is likely. Tim