A pharmaceutical company is more likely to spend $100 million to research a new drug when it knows it will be able to charge different prices in different countries rather than when it knows it will be required to charge the same price in different countries.This is because when a pharmaceutical company can charge different prices in different countries, it has the potential to generate higher revenue and recoup its research and development costs more effectively. By tailoring the pricing strategy to each country's market conditions, the company can take into account factors such as the local healthcare system, purchasing power, and competition. This flexibility allows the company to optimize its pricing strategy and potentially earn higher profits.On the other hand, if the company is required to charge the same price in different countries, it may face challenges in achieving a satisfactory return on its investment. Different countries have varying economic conditions, healthcare systems, and willingness to pay for pharmaceutical products. Imposing a uniform price across all countries may result in the company not being able to fully capture the value of its product in certain markets or facing resistance from countries with lower affordability.