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The Tobacco Essay

1118 words - 5 pages

English 1200

10/20/2012

“The” Tobacco

Luxury, money, power, pure; these are the type of words that come to mind when one thinks of a cigar, another familiar word is usually Cuba. Cuban cigars contain the finest tobacco in the world and the numbers show for the communist economy as it generated four hundred million dollars last year for Cuba alone according to Money News. The United States which is the largest Cigar market in the world does not even sell Cuban cigars due to a fifty year-long trade embargo with the trifling sized neighbor which is the United States. So then where is Cuba exporting this product to generate such large numbers? Western Europe is responsible for the ...view middle of the document...

They continue to purchase Imperial Tobacco products because of the fine Cuban tobacco they contain. This is supply and demand at its finest; the demand will always be high so of course the supply will match.
Cuba is an economy with little activity recently. Some of their main exports have been decreasing at a constant rate. “In 2006 the government closed half the islands sugar mills because they no longer produced a profit-a milestone for Cuba, whose economy has been based on Sugar for over 200 years. Overall the portrait of the Cuban economy is bleak, the problems are traceable to their underdevelopment” (LeoGrande 545). Having a Communist based government in a growing democratic world; economic problems are going to occur for Cuba. According to money news Cuban cigar sales are on the rise. “Cuban cigar sales jumped 9 percent to $401 million this year as spending on luxury items increased in countries with stronger economies. They said Western European nations such as Spain held on to its position as the top consumer of what are generally considered the world’s finest cigars”(Money News). Habanos S.A. is Cuba’s largest cigar distributor; they do direct business with Imperial Tobacco in Great Britain whom supplies all of Western Europe including Spain according to the article. Due to the United States fifty-year long trade embargo against Cuba, the cigars cannot be sold legally in the United States which is the world’s largest cigar market. So it can easily be said Western Europe is keeping this business alive for a weak economic nation. “Western Europe is Habano’s biggest market, accounting for fifty three percent of sales last year according to Javier Terres, vice president of Habanos. The Tobacco of Cuba is a “must have” for the economy to function. Not only does it bring in revenue but the amount of labor it provides for the Cuban people. According to the Central Intelligence Agency “Nearly thirteen percent of all Cubans working in manufacturing are employed in the cigar factories, and more than 26,000 people are involved in commercial Tobacco cultivation, or roughly 2.5% of the agricultural workforce”(C.I.A. World Fact Book). For the size of Cuba and its population that is a significant amount of labor brought on...

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