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A U.S. company that has developed a novel approach to curing a common eye disease is considering opening operations in India, a country in which

A U.S. company that has developed a novel approach to curing a common eye disease is considering opening operations in India, a country in which there is a great need for this treatment. The treatment uses a proprietary combination of readily-available drugs and the price is moderate, but not low. The company can expect:

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to earn above-average returns in India because of the high need for the treatment.

to have a difficult time earning above-average returns because Indian firms will probably copy the proprietary formula and sell the treatment at a lower price.

to earn above-average returns because India is increasingly enforcing intellectual property rights for foreign firms, especially in the medical field where the country has great need.

to earn below-average returns because India regulates the prices that can be charged for medical treatments and drugs so that these can be widely available to its population.

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