Positive and Negative Externalities

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The two industries I chose to show examples of negative and positive externalities are Phillip Morris International and the Southwest Airlines. The negative externalities are from the Phillip Morris articles in relation to second hand smoke and health costs associated with smoking. There is over 60 billion spent in health costs. There are 35 billion in medical expenses, 20 billion from missed time at work and 5 billion in related fires, smoke, and odor damage. These are not only for the people that smoke but also for those that do not smoke.Although there has been a tobacco tax added to control the purchase of cigarettes it still does not stop those that are additive to smoking. The tax revenues should be used to help victims of smoking damaged or used towards government programs.

Phillip Morris has implemented programs to assist those who wish or have tried to stop smoking. They have also placed warnings messages on the side of each pack of cigarette produced from their company. Although it is too late for those who are already addicted to smoking or have died in connection to smoking. Smoking has caused the economy quite a bit of harm from polluting the environment; it harms a baby that not born or even a baby yet with respiratory problems, lung cancer and smoking just makes the air we breathe smell bad.

The positive externalities are from Southwest Airlines. They provide a service to the public but they not only provide a service it is there promise to the public to be courteous to the passengers, they offer assistance to everyone with a smile. The prices are reasonable to fly and they fly just every state in the United States and some of the internationals. Southwest Airlines was chosen as one of best companies to work for. The airline just recently purchased a 500 passenger Boeing 737 to comfortably fit passengers with a longer travel time.

Southwest airlines have implemented different programs for their employees which in turns show thru their...
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