CASE STUDY
Asia had emerged as the destination for medical (healthcare) tourism capitalizing on advantages of “lower cost skilled personnel,cultural factors, natural endowments and unique forms of medicine.” The targeted consumers were patients from developed nations where medical treatments were expensive and the waiting lists long.
By providing medical services to foreign customers, these countries were not only generating valuable foreign exchange, but were also creating employment opportunities. Thailand was the leader in the region, followed by Singapore and Malaysia and India as the preferred destinations for medical treatment. The benefits of foreign exchange, employment and growth in national income, which extended well beyond the medical, travel and tourism sectors attracted government interest across Asia, and efforts to attract medical tourists added to the growth of the industry Though Asian countries provided cheaper medical services, they were also perceived by some as being manned by low quality doctors who provided poor quality treatment. Pricing of the treatments and packages across the region varied. Experts opined that the over emphasis on the foreign patients who offered higher revenue compared to domestic patients can be detrimental to public healthcare services in the home country. Despite the issues and challenges, the region had vast opportunity for growth The case describes the growth and reasons of the Asian region as a preferred destination for Medical/Healthcare Tourism and the importance of the healthcare tourism industry in the Asian economies. The case details the issues and challenges for the countries in servicing the patients. The case ends on the discussion whether such emphasis on healthcare tourism was diverting the attention and resources of the government from the domestic healthcare needs, especially public health. With such competition and challenges, would Asian countries be able to capitalize on the opportunity and at the same time fulfill the social obligation of healthcare at home
Answer the following question.
Q1. Discuss the growth and reasons of the Asian region as a preferred destination for Medical/Healthcare Tourism and the importance of the healthcare tourism industry in the Asian economies.
Q2. Analyze the issues and challenges for the countries in servicing the medical tourist patients.
CASE STUDY
With the number of patent applications increasing exponentially the USPTO (US Patents and Trademarks Office) found it increasingly difficult to cope with the workload. This resulted in a situation where many patents were awarded to vague ideas without scrupulous review. Also there were many instances where the approved patents stifled further innovation, than encourage it and patents were used more like a weapon against competition. Many were apprehensive about the suitability of the patent system of the industrial age to the information age and suggested revamping not just the patent system, but also the entire system of intellectual property law.
Answer the following question.
Q1. Discuss the conditions that led to the troubles for USPTO, the relevance of business method patents and the viability of the Patent Law in protecting innovators in the information age
Q2. Analyze the potential benefits that the reforms could bring to the US economy, which drives a considerable part of worldwide industrial growth.
CASE STUDY
Measuring the Results of DonorSupported Tax Reform – The case of donorsupported tax reform in Nigeria (GEMS3) Taxation is an important exchange between government and private enterprise. It provides the means through which governments are able to fund their activities, while influencing the behavior of the private sector through the use of incentives and penalties. For many emerging enterprises, the fear of taxation keeps them informal and hidden from official observation. Tax is central to the business environment as well as to the political accountability mechanisms of the state. In the past, tax reform typically focused on the shortrun objectives concerned with adjusting tax rates and increasing revenue. However, from a business environment perspctive, tax reform focuses on the longerterm concerns affecting economic growth and investment. Donor and development agencies support tax reform for a variety of reasons. These include: Increasing the sources of taxation; Broadening the tax base to include micro and small enterprises; reducing the tax burden for individual taxpayers; and Strengthening political accountability processes. Thus, donor and development agencies work with governments to streamline their tax systems, lower the barriers for firms to participate, encourage foreign and domestic formal investment, widen the tax base, and set the conditions necessary to lower the perbusiness burden. Writing for the World Bank Group, Bruhn (2011) describes the challenges of measuring the effects of tax reforms on economic outcomes. Overcoming these challenges “involves extensive data requirements, nonuniform reporting practices, identification problems, and a wide range of imperfect measures and methodologies”. She cites several studies that link tax reforms that focus on reducing corporate tax rates to increases in investment and formal firm creation. While less is known “about the effects of reducing compliance costs”, a few studies have begun to indicate evidence of a link between tax simplification and an increase if firm creation and sales. Donor and development agencies that support BER, focus on tax reforms to contribute to increased private investments and rates of formal firm establishment, along with increases in business turnover and employment levels. These enterpriselevel changes enhance the capacity of the private sector to contribute to economic growth and poverty reduction. 2.1. The case of donorsupported tax reform in Nigeria (GEMS3) In Nigeria, the World Bank and the United Kingdom’s Department for International Development (UK Aid) fund the Growth Employment in States (GEMS) program. The Nigerian Federal Ministry for Trade and Investment is responsible for implementing the program, which began in 2011. This program aims to create jobs and increase nonoil growth in specific value chains. UK Aid has provided a grant of £90 million and the World Bank a concessionary loan of US$160 million. GEMS indicates it will achieve an overall internal rate of return of 48 percent. A key target is the creation of at least 100,000 jobs directly in the selected sectors. The program targets at least six economic sectors and aims to support small and mediumsized enterprises (SMEs). While GEMS has four broad program themes, the third of these, GEMS3, is entitled “Support Improved Business Environment”. This is a fiveyear program, which is due to conclude in 2015. GEMS3 seeks to improve the environment for doing business in Nigeria, especially in land, taxation and investment, so that these markets will work better for the poor. The GEMS3 12 business model states that these improvements in doing business will ultimately lead to lasting improvements in economic opportunities for the poor, especially women. GEMS3 has an overarching framework (i.e., logical framework) that cuts across
Answer the following question.
Q1. What is the importance of tax payment in the business environment? Explain.
Q2. How the tax base is widened with the coordination of donor and development agencies.
CASE STUDY
In 2009, Malaren issued a recall for every stroller it had sold in the US for a decade, which came to 1 million units. The strollers were recalled so that a cover could be installed to prevent amputation of a baby’s fingers, which could happen if the baby were to be in the stroller in the wrong spot. As a luxury brand, this incident was damaging even though it was a misuse of the product and not a defect. Experts believe that Malaren did the right thing in the aftermath of the recall, asking for a fast track recall from the Consumer Product Safety Commission, and got out in front of the recall as it started spreading through the press, saving face and further embracing a mission of child safety.
Answer the following question.
Q1. Give an overview of the case,
Q2. In your opinion, whether recalling strollers for modification was a wise step or not, Comment with justifications..