The Growth of an International Cigarette Industry

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Abstract
This chapter examines the process by which the global cigarette industry was established during the first half of the 20th century. It also analyses the role played by the British American Tobacco Company Limited (BAT Co.), which became the world's leading international cigarette manufacturer. The evolution of the international cigarette manufacturing industry before the Second World War occurred in four phases. These include the shift from hand-rolled to machine-made products during 1880—1902, the American Tobacco Company's shift towards foreign direct investments, competitors' attempts to challenge BAT Co., and the creation of cartels and informal agreements that replaced the competitive rivalry between manufacturers in 1929.

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