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In the Late 1800s, Louis Pasteur Was Searching for a Vaccine

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In the late 1800s, Louis Pasteur was searching for a vaccine for anthrax in livestock. One French veterinarian had a local reputation for being able to cure anthrax by applying oils and wrapping the animal in cloth to induce a fever. Pasteur also knew that some animals got well on their own when left untreated. Pasteur tested the effectiveness of the local veterinarian's methods by injecting four cattle with anthrax bacteria. He then directed the veterinarian to perform his procedures on two cattle. The other two cattle were left alone. One cow from each group died and the other one in each group survived. Pasteur dismissed the veterinarian's procedure as ineffective, but he also considered this to be a poor test. Why would he consider this to be a poor test?


Definitions:

Direct Investments

Investments made directly into a company or project, rather than through securities, stocks, or other indirect means.

Terrorist Activity

Violent acts intended to create fear, perpetrated for a religious, political, or ideological goal, often targeting civilians.

Political Risk

The risk of losing money due to changes in a country's political environment or government policies that would affect investments negatively.

Transaction Gains

Refers to the profits realized from the buying and selling of assets or securities within a specific timeframe.

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