Tobacco-Free Plan for Republic of Ireland

In this article, it states that the Republic of Ireland decides to ban smoking as 22% of people aged 15 or above smokes and it has significantly affected the health of citizens in ireland. The ban can reduce the externalities produced from smoking and can reduce the costs brought to the society, such as second hand smoke and medical costs of the smokers. I believe that Ireland can reach their goal of being tobacco free by 2025, as a total ban is more effective than a tax as a tax has many negative impacts on the society.

For example, there is a possibility of the emergence of black market. This could further reduce the effectiveness of the taxation policy and the goal of discouraging smoking.   However, firms that produce cigarettes will face a loss of sales in Ireland. This is one of the disadvantages of an industry that is too narrowed and has a focus strategy, where it could run out of business when they are in these situations. These firms should look like a product differentiation or a new product line that uses different strategies in order to secure its position in the market and avoid unexpected changes.

 

http://www.bbc.co.uk/news/world-europe-24386229

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