Business Research Methods

Import of Medicines and Impact of prices

Submitted By: Submitted To:

Laila Khalid Ms. Saeeda Batool

BBA 2K6 (B)

April 24, 2009

Introduction

Pharmaceutical industry is one of the most critical parts of a country’s industrial sector. In
Pakistan, there are more than 100 players in the pharmaceutical industry. Most of the companies
are involved in import, production and export of medicines. Due to unavailability of certain raw
materials and latest equipments, some expensive medicines are imported from other countries.
Prices of these medicines are always fluctuating due to currency exchange rates and raw material
prices. This change of price also affects the demand for these medicines.

Problem Statement

Import of medicines is affected by change in prices of medicines.

Theoretical framework

In this study, import bill of medicines is the dependent variable as it’s the focus of study that
how import of medicines is affected. Prices of medicines, is the independent variable as it has an
impact on the import bill of medicines.

In economics, there is a relationship between demand for a product and its price. The demand for
a specific product determines that how many units of it will be imported. So price is related with
the import bill of a specific product.

Data

Data for import of medicines and change in prices of certain medicines will be collected from a
local company importing medicines into Pakistan. The data will be of quantitative nature.

Methodology

Two types of methodology will be followed to reach to the conclusion.

1- Trend analysis
2- Regression analysis
Limitations

There are few limitations in this research, which are:

1- Data will be collected from a single company.

2- Data will be gathered for few specific medicines not for all.
3- He period for which data will be collected is not lengthy enough.