India has weak patent protection for pharmaceuticals, and Canada has price controls. The United States could adopt similar policies without any bad consequences to the future market for drugs.

Question

Quizplus · Accepted Answer

While India and Canada have weaker patent protection and price controls respectively, the United States cannot simply adopt these policies without consequences. The US market for drugs is significantly larger and more lucrative than those of India and Canada. Weaker patent protections and price controls could discourage pharmaceutical companies from investing in research and development, which could ultimately harm the future market for drugs.

India Has Weak Patent Protection for Pharmaceuticals, and Canada Has