In the past eras the health effects of the consumption of tobacco and its related products were ignored (Bates, et al., 2003). The level of awareness of the health effects and risk posed by the consumption or exposure to the consumption of such products was limited. Few people were aware of what tobacco and related products could do to their bodies, but this has changed in the recent past (Kessler, et al., 1996). With sensitization and creation of awareness many people have started to see the negative health benefits of exposure to tobacco and other similar products. Most governmental bodies were turning a blind eye on the consumption of tobacco. The rules and regulation introduced to follow up such were loosely enforced …show more content…
The message is intended to warn people from consuming such as the message is very clear and precise that consumption of tobacco and the similar products will lead to death (Saloojee & Dagli., 2000). Many people who did not have that prior information of the effects of smoking will start questioning their habits, and this could even lead to some of the quitting the habits. BAT derives its profits and caon survive if their clients consume its products so if the consumption is reduced it means that soon the company may go out of business (Gilmore, et al., 2010). The health regulations are also banning the company from making adverts o the tobacco commodities, and that’s is hurting the company’s customers base. The company will find it very difficult to explore new markets given that most if the clients don’t have the information regarding the commodity and the only way to inform then, is by the use if adverts but then the use of such is being banned. There are higher expectations that these rules will be tightened as the effect of globalization become more evenly …show more content…
Governments realized that even though they were restricting their citizens from the consumption of tobacco by increasing the price of the commodity the product would still be utilized. Most governments have decided to cash in on the consumption of tobacco and similar products, so they started to increase the price of such products on an annual basis (Gilmore, et al., 2007). An economist argues from the point that an increase in the prices of a commodity will have a negative impact on the demand for such a commodity (Chaloupka and Saffer, 2000). The BAT as a manufacturer will opt to either share or pass on the whole burden of taxes to its clients, and this will mean that the prices of such commodities will go up. The organization is under threat if these prices continue going up most of its clients will not be able to afford the