...With the harmful side-effects that accompany tobacco use, it can be surprising that the tobacco industry manages to maintain tobacco as a legal product. To the American economy, tobacco has been a staple commodity since the birth of our nation, and has continued to thrive as a multi-billion-dollar industry – despite several setbacks. During the 1990’s and the 2000’s, the tobacco industry faced several lawsuits as well as increased government regulation, as many believed that companies should not be allowed to profit off of a product that kills people. The discussion over the ethics of the tobacco industry a long list of pros and cons. Currently, the tobacco industry is a legal substance, and fosters hundreds of thousands of jobs. In...
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...13th, 2011 Exotic Smokes Cigarette Consumer Behavior Exotic Smokes Cigarette Company (ESCC) has employed TRIAAD Research Group to analyze and outline consumer behavior, needs, and desire for fruit and candy flavored cigarettes. ESCC will target 18-25 year old customers implementing a $25 million dollar advertising campaign. Competition and Tobacco Information Tobacco is a global industry native to America and can be grown on any warm and moist continent. Presently there are six main manufacturers of cigarettes in the United States consisting of; RJR Nabisco, Inc, B.A.T. Industries, Loews Corporation, Liggett Group, and Phillip Morris. China, India, and Brazil were the three top sellers of tobacco in 2000 with the United States being fourth. Joanna Johnson (2010) states the British American Tobacco (BAT) reports the market share leaders as Phillip Morris International (PMI) - 16%, British American Tobacco (BAT) - 13%, Japan Tobacco International (JTI) - 11%, and Imperial Tobacco - 6%. Top Five International Brands • Marlboro • Winston • Mild Seven • LM • Kent Top US Tobacco Companies • Altria • Lorillard • Reynolds American Consumer Perception A quote posted by "I’ll tell you why I like the cigarette business. It cost a penny to make. Sell it for a dollar. It’s addictive. And there’s a fantastic brand loyalty.” - Warren Buffet. In September of 2009 the United States...
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...THE ECONOMICS OF TOBACCO TAXATION IN INDIA Tobacco taxation in India tends to be low for the most commonly consumed tobacco products. In order to suggest ITC about their strategy for the rural market, we must understand the taxation policies that prevail. India has a tobacco tax structure which is complex, different taxes for hand-rolled versus machine-made bidis, etcetera. In the table given, we observe that bidis are taxed less than filtered cigarettes. At the same time, the tax remains constant for bidis whereas it increases for cigarettes. In table 3.5, we observe that cheaper the tobacco, higher the tax because we assume that cheaper tobacco is more hazardous. But for bidis though the cost is cheap, it is taxed less as it focuses on the mass consumer whose buying potential is less. So its demand is more elastic than the expensive tobacco. Considering the data given in table in 3.1 and 3.5, tobacco products like bidis are less taxed, and it caters to the needs of majority of the consumers. Cigarettes and bidis are consumed by classes of people from different economic strata. Rural markets have a potential for bidis since the lower income group resides more in rural areas. The taxation on bidis is almost constant through the years, it is more profitable to enter the tobacco market through bidis in rural areas.. Own price elasticity in rural areas for bidis is more elastic than in urban areas. For example, an increase of 10% in price will decrease the quantity...
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...The legalization of marijuana has been one of the most highly debated topics of today’s society. It has the potential to be both beneficial and harmful to mankind as a whole; however, the pros of legalization far outweigh the cons. The most common argument against marijuana is that if it were to be legalized that it could have adverse health effects, especially when used in large doses; but any substance can be harmful if not taken in moderation. Why are substances such as tobacco and alcohol legal, when they all carry equal risks and benefits? Why is marijuana unfairly controlled and restricted without consideration to the facts? Cigarettes are legal yet one in ten smokers will have lung or heart related complications that have been directly linked to the tar in cigarettes by many studies, including the 2014 Surgeon Generals Report. The study details the correlation between lung and heart complications and smoking cigarettes. The possible applications for marijuana In medicine are astounding; even in the early stages of medical marijuana research, leaps and bounds are being made in pain relief and management for the sick, elderly and terminally ill. It is truly helping millions of people around the world manage a whole range of ailments. To ignore the facts about marijuana is a step back for society as a whole. Almost 25,000 different commercial and industrial products can be made from hemp/marijuana, including: milk, clothes, paper and medicine. Why is this valuable...
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...on Innovative Products and Treatments for Tobacco Dependence; Public Hearing; Request for Comments 1. Food and Drug Administration. This agency and proposed regulation interests me because since it is something that has become popular in the recent years and that it affects many people in the united states and in the world today. Yes, many people in the gaming industry smoke on a regular basics. It will not affect the business directly; just the workers in the industry. 2. The proposal is a consideration of applicable approval mechanisms and additional indications for nicotine replacement therapies (NRTs), and input on a report to Congress examining the regulation and development of innovative products and treatments for tobacco dependence. In more basic terms it is trying to get tobacco dependent treatments or mechanisms, such as electronic cigarettes, a chance to be officially approved by the FDA. 3. Six months after most people purchased e-cigarettes, 31% of these smokers said they'd quit cigarettes and two-thirds of them said they'd cut back on the number of cigarettes they smoked. A third of those who'd quit smoking also quit using e-cigarettes. But E-cigarettes have not been tested for efficacy and safety. Additionally, they are produced overseas with little oversight to ensure good manufacturing practices. To regulate this product identified chemicals and quantities that is used in this product, release pros and cons for this product, and put a warning label...
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...background UST Inc. is a smokeless tobacco company which enjoyed a long tradition and a recognizable brand name. It is the leading producer of moist smokeless tobacco products and widely known for its conservative debt policy and uninterrupted cash dividend payout since 1912. The company is the major player in U.S. smokeless tobacco market. For example, it holds the maximum market share (77%) as a whole, and dominates especially in the growing segment of moist smokeless tobacco. Additionally, it has widely recognized brand and competitive positon in the market by constant innovation and new product innovation. Finally, UST has historically been one of the most profitable companies not only in the smokeless tobacco market but also in the corporate America. Although the above advantages, UST now faces with continuous threat from price-value competitors, a softening smokeless tobacco market, investors’ concern about over-investment on non-core operations and negative effect of public and political sentiment towards the tobacco industry. 2- ) Evaluate UST’s attributes/Risks from view point of bondholder The following factors weave into the risks and attributes of the company from the creditors’ point of view (“” and “” represents advantage and disadvantage, respectively): Widely recognizable brand Name UST has widely recognized brand. We can see from the Table B of the case, the 1998 market share of the top moist smokeless tobacco brands, only one brand is not from...
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...Decriminalize the use of Marijuana American cultural views are in flux. Marijuana, once depicted as a menace to society in the classic film “Reefer Madness” is now considered to be a panacea for a multitude of health issues. While it is debatable that usage leads to more powerful drugs it is certain that the tax revenue generated by the sale of marijuana has been a financial boom to the western states that have implemented newer regulation. The time has come to unclutter the court system and move into the 21st century and decriminalize the personal and medicinal use of marijuana. Marijuana is a very widely used illegal drug in the world today. Marijuana was made illegal through prohibition in 1905. Before 1905 you could go into any local drug store and purchase marijuana (Stuart). Marijuana is a natural remedy for many illnesses. According to many users medicinal marijuana offers relief from pain related to cancer, AIDS and multiple sclerosis. Said side effects, that are psychological, include hallucinations, mood swings and impaired judgment. Some consider marijuana a drug that would lead to other drug dependences, but this has not been scientifically proven. There has been millions of dollars spent to reduce the use of illegal drugs in the United States (Hausk 14). This type of spending is one reason to push to decimalize marijuana. “According to a 2010 study from Cato, legalizing marijuana would regulate the system and offer rehabilitation service to those addicted...
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...ECONOMICS ASSIGNMENT Topic :TAXATION OF TOBACCO IN INDIA By- Group 3 Q1.Interpret table 3.1 and 3.5.The team is asked to evaluate the future prospects of ITC's tobacco products in the rural areas based on the numbers in these two tables. Write a brief report explaining ITC's rural market potential based on the numbers in the case According to the table 3.1, there is a minimal increase in the excise duty of unfiltered cigarettes in the years 2006-07 and 2007-08 and large increase can be seen in the year 2008-09. In the case of filtered cigarette, there has been a minimal increase or rather we can say that excise duty has been constant for 2007-08 and 2008-09. In the case of bidis, the excise duty is constant for 2006-07 and 2007-08 while decreases in 2008-09. So we can make out from this given table that by increasing the cost of unfiltered cigarette the government wants people to shift from unfiltered to filtered cigarette which will eventually lead to betterment of public health. Secondly, it also helps the Government in the generation of revenue. According to table 3.5, there has been an increase in consumption of bidis and less in cigarettes from 2000-01 to 2005-06. While due to the increase in price of bidis in the year 2006-07, the cigarette consumption of brands likeGold flake, Navy cut, Gold flake small and Wills flake has increased. As the price is increased there would be less consumption of cigarette while on the other side the revenue generated would still...
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...Benefits of Genetically Modified Crops Genetically modified crops (GMOs) have been around for a long time. The first time the world was introduced to this world changing form of crop was in 1986. This is when a GMO for of tobacco was tested in Belgium. Not far after, in 1987, the first GMOs were introduced to the United States. The two GMOs that were introduced were tobacco as well as tomatoes. In 1992 the FDA declared the altered crops "not inherently dangerous", so they don’t need special regulations (1). The list of benefits that follow suit with GMO not only help the farmer but also the consumer. GMO crops are known to produce bigger yields. This allows the farmer to get more efficient use out of his land. Iowa State University observed 377 fields that grew Bt corn (GM) and non-GM corn. The fields with GM seeds yielded 160.4 bushels corn per field, while crops grown from fields of non-GM seeds yielded 147.7 bushels of corn per field (2). Genetically modified crops are also known to have better texture flavor, and nutritional value compared to non-GMO crops. For example, in Asia, many people suffer from the lack of many key vitamins. One of those is vitamin A. The majority people cant afford to eat properly, so scientists created a GMO version of rice to help supply the people with this vitamin they were missing. They took a gene from a carrot and implemented it into the common white rice, thus creating golden rice. It is a cheap way for the people of Asia to get vitamin...
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...and market share than all other cigarette manufacturers. Philip Morris USA began its inception more than 150 years ago selling tobacco and ready-made cigarettes in London, England (Philip Morris, 2011). In 2004, Western Michigan University honored Philip Morris USA as the employer of the year. Every year since 1991, Western Michigan University honors a major employer for its recruiting, educational partnerships and its support for professional development of selected students and alumni. The backlash Western Michigan University experienced in honoring this employer is for one thing: Philip Morris USA is a manufacturer of tobacco products. The author of the editorial piece, “WMU deserves credit for honoring Philip Morris as top employer”, clearly indicates opposition to the backlash WMU received for honoring such an employer and concludes that although the manufacturing of tobacco is unpopular in today’s society, it was the right and courageous thing for WMU to do. Discussion Philip Morris USA is a manufacturer of tobacco products. Their main products are cigarettes and smokeless tobacco. Philip Morris USA understands that smoking is hazardous to a person’s health and according to the company website, philipmorrisusa.com, is actively engaged in the health crusade against tobacco, cigarettes and second hand smoke. The article does not deny that tobacco can lead to lung and various cancers, is addictive and is illegal to sell to minors. According the U.S. Department of Health and...
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...The Pro and Cons of Legalizing Marijuana Genaro Esparza SOC 120 Jenna Soard May 1, 2011 The Pros and Cons of Legalizing Marijuana In 2010 an estimated 443,000 people died prematurely from smoking tobacco or exposure to secondhand smoke, and another 8.6 million live with a serious illness caused by smoking. Despite these risks, approximately 46.6 million U.S. adults smoke cigarettes. Alcohol use last year led to 14,406 alcoholic liver disease deaths and 23,199 other alcohol related deaths excluding accidents and homicides. (Alcohol Use, 2009) Despite these alarming statistics, these substances remain legal and socially acceptable while marijuana, which has never killed anyone anywhere, is illegal, remains classified as a stage one controlled substance, which likens it to killer drugs such as LSD, and heroin, both so lethal you could die with a single use. Why is it socially acceptable to use substances, which kill thousands a year while a plant that is practically a miracle drug remains portrayed as one of the most dangerous substances, known to man? In this paper, we will look at the pros and cons of legalizing marijuana the financial impact as well as the effects it would have on industry. We will also look at social impact caused by legalizing marijuana can it be socially acceptable. Alcohol and tobacco continually kill people by the thousands and yet remain legal, why then is marijuana, a drug that has never killed a single person still illegal. The...
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...Juan T. Alborta 1401LOGIC321335A-class Heather Wilburn 10 September 2013 Pros and Cons of Legalization of Marijuana Marijuana has been debated for decades all over the world, and it still unsure what is the best option for the people, either make it legal or keep it illegal like in almost all the countries. But here I am going to explain and show you some facts of each side of the coin. For the pro side there are many aspects that show how legalizing the marijuana can bring more benefits than keep it illegal; for example, there is evidence that show how marijuana helps some illness which means is good for medical use, there is also a fact that combating the Marijuana the governments spend tons of money, and also comparing the effects and causes of marijuana to the effects and causes of alcohol and tobacco makes thoughts easier to see legalization of marijuana makes the things better; On the other hand, looking to the other side of the coin, we got this drug which causes bad things in our bodies, it has immediate bad effects right after using it, it has also long-term effects, it seems also as a gateway drug in our society. The positive side of legalize the Marijuana. It has proved that Marijuana can be used as a treatment for many illness and bad symptoms of illness; for example, for those people who has Cancer Chemotherapy treatment and causes extreme nauseas and vomiting to them, Marijuana reduces those extreme symptoms, and it also alleviates pretreatment anxiety...
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...healthy alternative to the tobacco smoker. The newer vapor style electronic cigarettes allow the normal tobacco smoker to have a healthier alternative to smoking cigarettes when trying to acquire their nicotine. Being the newer product out on the market in the refined versions of vapor liquid you can find today, there are many health questions that linger in people’s mind, some of which include but are not limited to, what do the doctors say? Is this FDA approved? How does this compare to the tobacco that is in an everyday cigarette? Is this lifestyle choice a change that I want to do? In this paper you can read several answers to these questions and having that knowledge you can go forward to understand more about how the electronic cigarette can affect you in positive and negative ways. There is a new discovery that is sweeping the nation in the recent years; the healthy substitute for cigarettes, the electronic cigarette. The electronic cigarette or the “e-cigarette” is becoming more and more known throughout the smoker community as a healthier substitute for one who is addicted to nicotine. The electronic cigarette takes out the harmful tar and other harmful aspects of tobacco and delivers the nicotine though a vapor to the smoker. Though smoking in general is bad for your health and you are still susceptible to the possible cancer and respiratory problems that is caused by nicotine, the e-cigarette is a much better alternative to the everyday tobacco smoker. Many questions...
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...City 4. Small pox, tobacco and the potato are all examples of the Columbian Exchange. True or False True 5. ____c. El Nino____________ are periodic climate-altering changes, especially in the Pacific Ocean, now understood to operate on a global scale. ? a. hurricanes b. El Pinto c. El Nino 6-7. (2 points) Define the term structural adjustment policies (SAPs) _________________________________________________________________________ SAPs are policies that the World Bank and International Monetary Fund required from governments to receive loans. The policies were started to help countries become economically self-sufficient. This was to help ensure that that the loans would get repaid. SAPs encouraged governments to reduce spending on government programs, minimize the number of civil servants and by lowering taxes on already established private industries. _________________________________________________________________________ 8. The Incan Empire was principally in northern Mexico. True or False False 9-10. (2 points) Describe the pros and cons of NAFTA. NAFTA is a free trade agreement made between the United States, Canada and Mexico. This agreement would remove most barriers to free trade and investment by eliminating tariffs, establish clear trade rules, to improve working conditions and to develop and expand world trade. The pros are trade increases, consumer prices are lower and relations to these countries are stronger. The cons are displaced workers...
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...increase the pests in the specific area. Lastly, not all farmers grow crops covered by most agricultural subsidies. This results in the these farmers having to raise the prices of their produce, which then results in people desiring their crops less than others. Even though there are many cons, the pros of subsidizing farmers far outweigh the cons. The U.S. should continue to subsidize farmers because without them, farmers must wait weeks in order to make money off of their work. Crops such as corn, wheat, cotton, tobacco, etc. do not grow over night. Thus this results in many farmers waiting weeks, sometimes months just to get paid for what they produce. Agriculture is a very important backbone to our society because it produces our food, materials to trade with, as well as materials a vast majority of the US population use today, such as wheat, tobacco, and...
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