The regulation of the UK pharmaceutical industry: A cost-benefit analysis

Regulation is not costless. It can have adverse effects on innovation, on the time required to develop a new product and on an industry's competitiveness. This article estimates the costs of regulating the UK pharmaceutical industry and whether the results are worthwhile.     

The road from Doha to Hong Kong in the WTO agricultural negotiations: a developing country perspective

Developing countries have both offensive and defensive interestsin the Doha Round of WTO trade negotiations. This paper discussesthe extent to which these interests have been addressed in theJuly 2004 Framework Agreement and in the subsequent negotiations.Many of the key demands of developing countries appear to havebeen accepted in principle in the Agreement, but the lack ofspecific details on how most of these principles will be operationalisedmakes it hard to evaluate their real significance. Progressis needed on the development dimension of the negotiations ifthe Hong Kong Ministerial Council meeting is to succeed.     

Internalization is still a general theory of foreign direct investment

Conclusions Part IV of Parry's article discusses three types of FDI activity by MNEs; these are correctly analyzed and fully consistent with my earlier work. All the three cases (vertical integration, transfer pricing and quality control) are examples of market imperfections which lead to internalization. I am glad that Parry accepts these“three areas where internalization appears to provide an explanation of FDI as a specific form of international involvement by the MNE” but I am surprized that he still cannot accept the general point that these are examples of“market failure” in an international context, which lead to multinational hierarchical activity. The focus of my survey article was to demonstrate that“established theories of FDI” tend to fasten one to one or another of such market imperfections, but in all cases internalization results. Internalization as a general theory of FDI is still a robust principle. It provides the conceptual foundation for analysis of the MNE and the field of international business.     

Embodied Cognition and New Product Design: Changing Product Form to Influence Brand Categorization*

This article explains how embodied cognition and perceptual symbol systems enable product designers to influence consumers by communicating key perceptual features through subtle changes in product design elements. In this way, managers can change perceptual design elements to support line extension strategies. More specifically, design changes can be used as a tool to help evolve consumer perceptions of a product's uses and brand category membership. The role of perceptual symbols in product design is illustrated by a well‐known off‐road motorbike brand that planned to extend into the street motorbike segment. In order to facilitate consumer acceptance of a street motorbike from this off‐road brand, the firm gradually introduced models containing an increasing number of elements of street motorbikes over a period of several years. The authors use this example to show how typical design elements of the target product category can be effectively integrated with design elements of the current product category by simply modifying key characteristics of product‐shape attributes. This process is further tested in an experiment, where motorbike models differing slightly in key product features (e.g., product shape) were rated on their resemblance to street or off‐road motorbikes. The results show a strong effect of these design changes on brand‐category membership. Managerial implications of this approach and future research directions are discussed.     

The UK Food Supply Chain – An Ethical Perspective

"The moral issues generated by the food supply chain demand attention and analysis. There must be an ethical approach balancing profitability with the welfare of life and the conservation of the environment." Lorice Stainer is a business ethics consultant and Visiting Fellow at Leicester University Management Centre; Alan Gully is Principal Lecturer in Business Studies, and Member for the Centre for Research in International Economics, at Middlesex University Business School; and Alan Stainer is Head of Engineering Management and Professor of Productivity and Performance Management at Middlesex University.     

Pricing a new product: Eurotunnel

Eurotunnel, due to open in 1993, will link Great Britain with mainland Europe. Massive cost overruns have cast some doubts on its future profitability, but this article shows how its cost structure gives it critical advantages in pricing against its competitors. The prospectus assumption is that Eurotunnel and the ferries will charge broadly similar fares. In this article, we show that substantially undercutting ferry charges is a far more profitable strategy. Moreover, this result holds even if consumers regard the tunnel as a superior service and is robust to any response by the ferries themselves. Their best strategy is to seek niche markets and avoid direct competition with the tunnel. The article draws parallels for other firms introducing new products by applying new technology in established markets.     

Engineering careers and technology transfer: Japanese companies in the UK

This article examines two issues: first how Japanese companies recruit, train and utilise engineers in their UK transplants; secondly, how technology transfer between British and Japanese engineers is affected by career structures. It draws on questionnaire responses from 88 companies and interviews at a small number of sites.