Should the UK Govermnet Allow the Market to Operate Freely in the Essay

Should the UK Govermnet Allow the Market to Operate Freely in the Allocation of Cigarettes - Essay Example For instance, government of diverse countries have imposed various types of taxes or statutory declarations against consumption of these products with the desire to reduce the utilisation of the demerit products. Demerit goods are described as those products and/or services, the intake of which may result in unhealthy or socially adverse impacts over the individuals of a country. There are varied types of demerit goods such as tobacco or cigarettes, alcoholic drinks, junk food items and recreational drugs among others. It is in this context that demerit goods, such as cigarettes are considered to be worse as it offers varied types of physical disorders to an individual as well as the society. With this due consideration, cigarette smoking is regarded as one of the key factors leading to negative externalities, which might hamper the social well-being within an economy by a large extent (Cancer Research UK, â€Å"Tobacco and Cancer Risk – Statistics†). ... tive externality takes place when demerit goods offer considerable amount of pessimistic impact over the society, thereby hindering the public health and its well-being. It mainly occurs when the societal cost increases than the private expenditures as a consequence of increasing purchases of demerit goods by the nationals. It leads to the failure of the market, due to surplus production of the product in comparison to the total requirement of the society. This results in the enhancement of the negative influence of these externalities within the society which ultimately amplifies the cost bore by the society of United Kingdom (Cancer Research UK, â€Å"Tobacco and Cancer Risk – Statistics†). Demerit goods such as cigarettes are considered as those products, with the regular consumption of which results in the hindrance for health development of an individual and that of the society as well. Even though the regular consumption of demerit goods such as cigarettes may als o lead to negative externalities, the demand of these products are identified to be increasing at a rapid rate in the markets of UK, which can be apparently observed with reference to the diagram represented below (Cancer Research UK, â€Å"Intensity Of Smoking Within The Citizens Of UK†). Intensity of Smoking within the Citizens of UK Source: (Cancer Research UK, â€Å"Intensity of Smoking within the Citizens of UK†) The underlining reason, which results in the overall enhancement of the demand for such demerit goods or negative externalities, is mainly due to lack of perfect information within the customers of the UK society. Thus, due to lack of appropriate knowledge, tobacco consumption or cigarette smoking has currently emerged as one of the significant social factors to be considered by the UK

Business strategy in transport Essay Example | Topics and Well Written Essays - 2250 words

Business strategy in transport - Essay Example In this context, it can be observed that the economic recession alike many other industries had affected airline industry as well. It can also be observed that apart from a number of benefits prevalent in the EU for starting a new airline service provider, there are certain difficulties that requires to be considered such as uncertain economic scenario, credit crunch, fluctuating fuel price and unpredictable environmental and climatic conditions. Due to these uncertainties, a few full-service airlines in the EU had suffered losses. Despite these certain hindrances the growth prospects which have been observed in the EU region has opened up opportunities for low cost service providers such as Ryan Air and EasyJet. In the EU there is a tremendous prospect of improvement in travel and tourism sector which will provide added growth prospect for a new airline service provider. Low cost operators can make the most of the existing and prospective scenario to leverage benefit out of it (Case Study, n.d.). Therefore, it can be observed that in the existing scenario in the EU, the low-cost operators are being able to earn profits for the shareholders. In this context, the research paper intends to critically examine the prospects of an entrepreneur who endeavours to set up a low cost scheduled airline within the EU. The route that has been selected is between London and Amsterdam. It is identified to be one of the most popular routes on a worldwide basis (Patrikarakos, 2009). The research paper will subsequently attempt to analyse the existing business environment to identify potential barriers to the intended business venture. Critical Analysis of the Business Prospect The intended business venture of the optimistic entrepreneur is towards starting a new low-cost scheduled airline service. From the provided case study, it can be observed that in the present economic context (post-recessionary period), there is a substantial growth prospect for establishing business in t he new venture. It can also be identified that in the present context, in the EU region, there are certain obstacles and losses faced by full service carrier due to few prevailing conditions. Therefore, the most promising growth prospect that can be identified is for the low-cost service carriers. The intended business venture can be started in not only the EU but also throughout the world i.e. Amsterdam to London route, which can be one of the most growth prospect oriented routes According to the intention of the entrepreneur, the new scheduled service will provide low-cost airline service in this particular route only at the inception. It can also be stated that the demand for service is at the optimum level in this route. Thus, a new service has tremendous opportunity to acquire benefits out of the growth prospect which can be from business travellers as well as leisure travellers who are likely to use the services provided by the new low-cost scheduled airline service (Patrikara kos, 2009). The two airports that can be selected for the scheduled airline service are Amsterdam Airport Schiphol, which is the prime international airport of the Netherlands, and Heathrow Airport of London, which is one of the busiest airports in not only the UK but also in the world (ACI World, 2011). In this context, it can be identified that the Amsterdam Airport Schiphol is situated mere 14 km outside the city of Amsterdam. The