Assignment: Externalities
Should the FDA regulate prescription drug importation?
According to the mission statement of the Food and Drug Administration, it is responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation's food supply, cosmetics, and products that emit radiation. The FDA is also responsible for advancing the public health by helping to speed innovations that make medicines and foods more effective, safer, and affordable; and helping the public get the accurate, science-based information they need to use medicines and foods to improve their health. The FDA regulates the pharmaceutical market by controlling the approval of imported drugs.
Your assignment this week is to assess the importation of prescription drugs by addressing the following:
1. List the arguments for allowing importation of foreign prescription drugs.
2. List the arguments against the importation of prescription drugs.
3. What relationship/s do you find between your research and negative externalities, positive externalities, and public goods?