Legal & Ethical Environment of Business
DATE: 2/4/2013 Week 1 Assignment
Follow the link below, read the article and analyze the practice of “dumping” dangerous drugs overseas. Can an American company be penalized for marketing a product deemed unsafe by the U.S., if it is not also banned by the foreign government? This passage is mainly talk about hot Winthrop and Crter-wallace companies "dumping" dangerous drugs overseas. From the legal point of view. First, in the United States side, FDA officials maintain strict controls over drug companies, including oversight of drugs exported from the United States. American law prohibits the export of drugs banned in the United States, such as dipyrone. But the federal government has no authority over drugs manufactured overseas by American multinational firms of foreign sales by U.S. firms. Which means those multinational firms have rights to sell their production that produced in overseas in foreign countries. Second, in the underdeveloped countries side, The company avoid the legal restrictions. the law only requires that what you cannot do, but does not stipulate what you can do. That gives those firms a chance. What they can do is producing and selling pharmaceutical products in foreign countries, so that the United States federal government has no right to interfere, and the undeveloped countries do not have the ability to detect the drugs. For example, In Kenya, more than 90 percent of the drugs sold by American companies were made outside U.S. borders. The label "Hecho en Mexico" - Made in Mexico - is on every drug package in that country, "even if they only put the pills in the bottle here," says Mexico's leading consumer advocate Arturo Lomeli. American drug companies thrive in countries like Mexico...
Please join StudyMode to read the full document